EHang nabs $23 million strategic investment led by K-pop pioneer Lee Soo-man

Beijing (Gasgoo)- EHang Holdings Limited, a global leading autonomous aerial vehicle (AAV) technology company, announced on July 12 that it has signed an agreement for a directed share issuance worth $23 million with several strategic investors. 

Photo credit: EHang

The lead investor is Mr. Lee Soo-man, the renowned music producer, entrepreneur, and founder of SM Entertainment, a leading international entertainment company in South Korea.

Within three working days, EHang will receive 80% of the total subscription amount as a deposit for this directed share issuance. The transaction is expected to be completed in the third quarter of 2023, subject to regulatory approvals and other customary closing conditions. The Class A ordinary shares issued for this transaction will be offered outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933, as amended, and will be restricted securities that cannot be resold without registration under or exemption from the applicable federal and state securities laws in the United States.

In addition to the directed share issuance, EHang will collaborate with Mr. Lee Soo-man to leverage their complementary strengths in promoting the development of urban air mobility (UAM) business in the Asia-Pacific region.

The funds raised will be used for EHang's working capital and general corporate purposes, accelerating technological iterations, driving business development, and commercial operations after certification, further solidifying EHang's leading position in the global UAM industry.