Kandi Technologies Provides Updates to Its Shareholders
JINHUA, China, June 24, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group,
Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), stated today that it has come
to the Company's attention that a recent online article, published by a short
seller, contains inaccurate and misleading information about our Company.
While the Company firmly stands by its disclosures in its filings with the
SEC, we are taking this opportunity to clarify certain issues as follows:
1. Kandi's $25 Million Debt/Note Payable.
As we have described clearly in our Form 10-Q for the quarterly period ended
March 31, 2013 (the "10-Q"), by issuing bank notes payable rather than paying
cash to suppliers, the Company can defer the payments until the date the bank
notes payable are due. Simultaneously, the Company deposits restricted cash in
banks to back the bank notes payable, and the restricted cash deposited in
banks generates interest income.On December 24th and 25th, 2012, the Hangzhou
Branch of Ping An Bank issued 140 million RMB (approximately $22 million)
notes payable to the Company due on June 24th and 25th, 2013, as disclosed in
our 10-Q.The Company deposited restricted cash of 50 million RMB
(approximately $8 million)to Ping An Bank as collateral when the notes were
issued. The Company re-paid 140 million RMB (approximately $22 million) notes
in full on June 6th, 2013 and June 19^th, 2013, and the Hangzhou Branch of
Ping An Bank has also re-financed 150 million RMB (approximately $24 million)
withnew short term notes payable of $6 million and $18 million to the Company
due on December 6^th and December 19^th, 2013 respectively. Simultaneously,
the Company deposits restricted cash of 60 million RMB (approximately $9.6
million) to the bank as collateral. As we have indicated in our 10-Qs and
10-Ks, this is a common practice for the Company in conducting its normal
business; using rolling notes payable from the banks, which the Company's good
credit makes possible, allows us to optimize the use of our cash flow.
The remaining $3 million short term bank loan referenced in the article is a
loan from Shanghai Pudong Development Bank issued on June 27, 2012 and becomes
due on June 27, 2013. The Company has already arranged the repayment ofthe
loan on June 25, 2013 and has negotiated its renewal by way of anew loan in
the same amount and received approval from Shanghai Pudong Development Bank
for such new loan.
2.The Shelf Registration Statement (S-3).
On April 19^th, 2013, the Company filed a $ 60 million Universal Shelf
Registration Statement (S-3) with the SEC which became effective on May 23,
2013.The shelf registration did not include the registration of any shares
for an offering nor a prospectus for an offering of any shares. When a
specific offering is planned, a prospectus supplement that describes the terms
of the offering will be filed with the SEC under Rule 424(b) within two days
of the supplement's first use or the determination of the offering price,
whichever is earlier.A shelf registration statement (S-3) is authorized by
the SEC under rule 415 allowing a single registration statement to be filed by
certain qualified issuers which permit public offering of multiple securities
for up to three years. In a shelf registration, securities usually are
registered for sale either on a continuous or delayed basis. However, the
Company's current S-3 registration is not an "At the Market" or "ATM" offering
as described in the short seller's article as: "Kandi's S-3 filing is known as
an "At the Money" registration statement." We believe the short seller either
lacks basic knowledge of securities regulation or simply releasing misleading
information to the investing public.
The Company filed a similar shelf S-3 registration statement with the SEC on
November 19, 2009 which became effective December 24, 2009. Almost one year
after that S-3 registration statement became effective, on December 21, 2010,
the Company raised approximately $16 million with a shelf take down. On the
same day, the Company filed with the SEC a Form 8-K to disclose the
transaction with purchase agreement attached
as well as a prospectus supplement to the shelf S-3 Registration Statement
Subsequently, the 2009 S-3 registration statement expired in December, 2012.
"Being one of very few Chinese electric vehicle (the "EV") companies publicly
traded on NASDAQ, we are very excited about the tremendous growth potential of
our EV offering and innovative business model in China," commented by Mr. Hu
Xiaoming, Chairman & CEO of the Company. "As we continue to build a solid
foundation for our long term growth, we care deeply to protect the interest of
our shareholders. While we have always welcomed suggestions and constructive
criticism from all parties, we will also defend ourselves against inaccurate
and misleading accusations or any attempt to manipulate our stock price."
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (Nasdaq:KNDI), headquartered in Jinhua,
Zhejiang Province, is engaged in the research and development, manufacturing
and sales of various vehicles. Kandi has established itself as the one of the
world's largest manufacturer of pure electric vehicles (EVs), Go-Kart
vehicles, and tricycle and utility vehicles (UTVs), among others. More
information can be viewed at its corporate website is
Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements of
historical fact included herein are "forward-looking statements." These
forward-looking statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions, involving
known and unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission and
available on the SEC's website (http://www.sec.gov). All forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other than as
required under the securities laws, the Company does not assume a duty to
update these forward-looking statements.
CONTACT: Kandi Technologies Group, Inc.
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