AIWAYS Europe Eyes US Listing, Signaling Potential Exit from Chinese Market

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Recently, we learned from relevant sources that on May 14th New York time, Hudson Acquisition l Corp., a SPAC company listed on NASDAQ, announced that the company had signed a business merger agreement with Aiways Automobile Europe GmbH, providing electric vehicles for the European market. It is reported that Aiways has established a European headquarters in Germany and its future sales focus will be on Germany.

The shareholders of Aiways Automotive Europe will receive the newly issued Hudson Acquisition l Corp. common stock, with an equity valuation of approximately $400 million. The transaction is expected to be completed around December 31, 2024. SPAC, also known as Special Purpose Acquisition Company, is established with the aim of conducting transactions with the target company for acquisition or business merger within a predetermined period of time, in order to list the target company. Compared to the traditional IPO model, the SPAC model is faster to go public, has lower costs, and has a simpler process.

Looking back on the path of Aiways Automobile’s IPO, the company had previously hoped to go public through a regular IPO. In June 2021, it was revealed that Aiways planned to list on the Science and Technology Innovation Board. However, with the tightening of IPO review on the board, the final listing was unsuccessful. Two months later, there were reports that Aiways would go to the United States for an IPO, but it still fell into silence afterwards.

In 2022, Aiways Automobile announced a new trend of going public, with plans to reverse shell the US stock education and training company China Liberal (CLEU) to go public in the US. China Liberal announced that the company has reached a non binding cooperation intention with Aiways Holdings Limited, the operating company of Aiways, to acquire all outstanding equity of Aiways. According to the terms of the letter of intent, the total valuation of Aiways Automobile ranges from $5 billion to $6 billion. After the acquisition is completed, all equity of Aiways Automobile will be converted into common stock of the listed company.

But the above plan encountered unexpected changes, and in 2022, Aiways Automobile was exposed to have difficulties in capital turnover. The founder team represented by Fu Qiang gradually withdrew from Aiways Automobile, resulting in a significant change in executive positions. The shell listing ultimately failed. At the same time, negative news about Aiways Automobile has been circulating frequently, including delayed salary payments, difficulties in collecting payments from suppliers, and a series of problems such as unpaid office rent, property fees, and water and electricity fees. In 2023, the company has already fallen into a financial crisis.