Kandi Technologies Group, Inc. announced that Kandi entered into a Membership Interests Transfer Agreement with the two members of Sportsman Country, LLC under which Kandi will acquire 100 percent of the ownership of Sportsman Country. The Transfer Agreement was signed on May 31, 2018.
Sportsman Country is a Dallas based sales company primarily engaged in the wholesale of off-road vehicle products, with a small percentage of business in off-road vehicle parts wholesale and retail. Currently, Sportsman Country has a seasoned management team and a distribution force averaging over ten years of sales experience. With countrywide sales channels in the U.S., its off-road vehicle products are particularly popular to American consumers.
According to Nasdaq.com, in the terms of the Transfer Agreement, the transferors promised that Sportsman Country will achieve pre-tax profit totaling over $10.0 million from 2017 to 2020. The pre-tax profit in 2017 was $1.02 million and Sportsman Country is targeting a pre-tax profit of more than $2 million, $3 million, $4 million for 2018, 2019 and 2020, respectively. Kandi will transfer $10 million worth of corresponding restricted shares to acquire 100 percent membership interests in Sportsman Country. Kandi is required to issue $1 million worth of corresponding restricted shares within 30 days from the signing date of the Transfer Agreement, the remaining $9 million worth of corresponding restricted shares will be released from escrow based on its pre-tax profit performance, i.e., $2 million worth of corresponding restricted shares will be released from escrow if pre-tax profit of $2 million is achieved for the full year of 2018, $3 million worth of corresponding restricted shares will be released from escrow if pre-tax profit of $3 million is achieved for the full year of 2019, $4 million worth of corresponding restricted shares will be released from escrow if pre-tax profit of $4 million is achieved for the full year of 2020.
Link: Kandi Technologies
