Benzinga | Jul 6, 2021 04:01PM EDT

MingZhu Logistics Enters Into Non-Binding MOU To Acquire CheYi Network; Financial Terms Not Disclosed

MingZhu Logistics Holdings Limited ("MingZhu" or the "Company") (NASDAQ:YGMZ), an elite provider of logistics and transportation services to businesses, today announced it has entered into a non-binding memorandum of understanding ("MOU") to acquire controlling equity interest of Zhejiang CheYi Network Technology Co., Ltd. ("CheYi Network"), an integrated online car-hailing and driver management services company. The acquisition offers MingZhu's customers additional platform enhancements, and directly fits with MingZhu's acquisition strategy, which includes adding financially accretive, best-of-breed companies and products.

CheYi Network was established in December 2015 as a comprehensive automobile service platform, providing a full range of services to the automotive industry. CheYi Network has built an integrated business platform with more than 6,000 vehicles and drivers for ride hailing services under management. Its vehicles and drivers provide services to major mobility technology platforms, such as SAIC Mobility and T3 Mobility.

Completion of the proposed acquisition transaction is subject to further due diligence by the parties and negotiation and execution of definitive documents, including a share exchange orsimilar agreements, and the determination of a definitive price and other related documentation to complete the transaction. The MOU is non-binding and there is no assurance that the transaction will be completed on the terms described above or at all.

Mr. Jinlong Yang, Chairman and Chief Executive Officer of MingZhu Logistics Holdings Limited, commented, "We are very excited to reach an agreement with the CheYi Network team. The company has done an excellent job building out an integrated platform featuring all the support and services drivers need. We view this business as a perfect fit for us and think it will serve as a centerpiece of our diversification strategy, which we plan to actively invest in and build upon. We believe that by infusing additional working capital and leveraging our operating expertise we can help to scale up the business even faster. This in turn will help to accelerate our growth strategy for many years to come based on the popularity and widespread reliance upon shared transportation services."