Chinese advanced air mobility developer EHang has secured fresh funding through a US$23 million private share placement.
Leading this new investment round is Soth Korean entertainment magnate Lee Soo Man, founder of SM Entertainment, a record label, music production and event management company based in Seoul.
The agreed conditions contemplate the immediate transfer of 80% of the funds to EHang, which will be primarily used as working capital. The deal is expected to be finalized in Q3 2023, after undergoing regulatory review.
EHang will issue Class A ordinary shares as restricted securities, which may not be resold without registration or an exemption from registration under United States law.
Lee Soo Man will not only be financially involved, but the South Korean businessman will also act as a vector for the further development of urban air mobility (UAM) and EHang’s interests in the Asia-Pacific region.
EHang expects its EH216 autonomous two-seater eVTOL to be certified by the Civil Aviation Administration of China (CAAC) before the end of 2023.
South Korea is one of the countries in which EHang has performed demonstration flights with this aircraft type, for which it received a Special Certificate of Airworthiness from Korea.