YHN Acquisition I Ltd (NASDAQ:YHNA), a blank check company currently valued at $80.31 million with shares trading at $10.17, announced today the signing of a material definitive agreement for a business combination with Mingde Technology Limited, a Cayman Islands company, and Zhejiang Xiaojianren Internet Technology Co., Ltd, a Chinese firm specializing in online sports platforms and health product store technologies.
The agreement follows a legally binding letter of intent dated January 15, 2025, valuing the equity of the combined entity at $396 million. According to InvestingPro data, YHNA has maintained relatively low price volatility, with the stock trading within a narrow range between its 52-week low of $10.00 and high of $11.28.
The business combination is contingent on the completion of an internal reorganization by January 27, 2025, which will allow Holdco to control and benefit economically from Zhejiang Xiaojianren Internet Technology Co., Ltd through a variable interest entity structure. Both parties have committed to negotiating a definitive agreement within 30 days post-reorganization.
During the 90-day exclusivity period, the parties will not solicit or engage in discussions or transactions that could interfere with the proposed business combination. This exclusivity aims to facilitate the successful negotiation and execution of the business combination.
This forward-looking statement is based on current expectations and involves risks and uncertainties. The actual outcome may differ significantly due to various factors, including market conditions and regulatory considerations.
The definitive agreement and subsequent business combination are subject to approval by YHN Acquisition I Ltd's shareholders and other customary closing conditions. InvestingPro analysis indicates the company maintains a FAIR financial health score of 2.44, which investors should consider when evaluating the merger prospects. Further details will be provided in the proxy statement to be filed with the SEC and distributed to shareholders.
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