#China #Beijing #Investment #Automotive #Autozi

Autozi Internet Technology (Global) Ltd. Secures Major Investment

On January 27, 2025, Autozi Internet Technology (Global) Ltd., a prominent player in China's automotive lifecycle services, announced a significant development in its financial strategy. The company has executed a Securities Purchase Agreement with an institutional investor, which will allow it to raise approximately $27.5 million through a combination of a senior unsecured convertible note and warrants.

Autozi, known for its rapid expansion and innovative solutions within the automotive sector, plans to utilize these funds to fortify its competitive position and accelerate its growth initiatives. Dr. Houqi Zhang, the founder and CEO of Autozi, highlighted the importance of this financing, stating that it marks a pivotal moment for the company as it aims to enhance its operational capabilities and strategic direction.

Growth Initiatives

The financing will enable Autozi to pursue three core strategic priorities:

1. Mergers and Acquisitions: Autozi intends to actively seek out opportunities for mergers and acquisitions within China’s auto parts supply chain. This move is aimed at achieving comprehensive coverage across all segments of the auto lifecycle, further improving its efficiency and competitiveness in the market.

2. Cross-Border Supply Chain Development: Another key focus will be developing a robust cross-border supply chain platform. This initiative is crucial for Autozi as it sets its sights on establishing a stronger foothold in international markets, thus enabling a seamless entry into overseas territories.

3. Investment in Research and Development: Autozi plans to significantly increase its investment in research and development. This commitment to innovation emphasizes the company's goal of keeping its technology and services at the forefront of industry advancements, ensuring that they meet the evolving needs of the automotive sector.

Transaction Details

Under the terms of the Agreement, Autozi will issue an additional note worth $500,000 upon the registration of its Class A ordinary shares. Additionally, the warrants allow for further issuance of notes up to $24 million at regular intervals following the closing date.

These financial instruments, including the convertible notes and warrants, are designed to empower Autozi with the necessary capital to execute its ambitious plans while maintaining its focus on sustainable growth. The issuance falls under the regulatory exemptions set forth in the Securities Act of 1933, ensuring compliance with legal requirements while facilitating strategic financial maneuvers.

As part of this transaction, Autozi has also committed to filing a registration statement with the U.S. Securities and Exchange Commission to register the resale of its ordinary shares that may be issued upon conversion of the notes.

About Autozi

Founded in 2010, Autozi Internet Technology (Global) Ltd. has become a leading provider of lifecycle automotive services in China. Employing an advanced online supply chain cloud platform and SaaS solutions, Autozi connects various stakeholders in the automotive ecosystem, driving efficiency and innovation throughout the supply chain. This interconnected approach positions Autozi as a crucial catalyst for growth and progress within the automotive services market.

Conclusion

The $27.5 million investment underscored by the Securities Purchase Agreement not only reinforces Autozi's financial standing but also marks a significant step towards realizing its strategic vision. With the funding, Autozi is set to enhance its operational strength, expand its market reach, and drive innovations that ultimately benefit its shareholders and partners. As the automotive sector continues to evolve, Autozi’s proactive approach in securing this funding demonstrates its commitment to remaining a key player on the global stage.