Ehang Holding Raises $23 Million from Investor Lee Soo Man

EHang Holdings Limited (EHang), a Chinese autonomous aerial vehicle (AAV) technology platform company listed in the United States, has raised a total of $23 million in a private placement led by strategic South Korean investor Lee Soo Man. EHwang announced that the company has signed share subscription agreements with several strategic investors. Lee is a well-known South Korean music producer, entrepreneur, and the founder of K-pop and SM Entertainment, a KOSDAQ-listed South Korean multinational entertainment company.

In addition to the private placement, EHang and Lee will work together to drive the growth of the Urban Air Mobility (UAM) business in the Asian Pacific regions, leveraging their complementary strengths.

EHang will use the gross proceeds of the placement for working capital and general corporate purposes, allowing it to accelerate strategic plans for technology advancement, business development, and post-certification commercial operations. This will strengthen EHang's position as a global UAM industry leader.

In three business days, EHwang will receive a deposit of 80% of the total purchase price for the proposed placement from the investors.

Subject to regulatory approval and customary closing conditions, the transaction is expected to close in the third quarter of 2023.

"I was struck by Lee's enthusiasm for innovative technologies, future air mobility, and our autonomous aerial vehicles."

“We are thrilled to have long-term strategic investors and partners, such as Lee, who share the same values and commitment in our journey,” said Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer.