After pre-reorganization and recruitment of strategic investors, WM Motor is confident of rebirth!

On the evening of October 9, as the news of a new "bankruptcy review" of WM Motor Technology Group Co., Ltd. (hereinafter referred to as "WM Motor") spread, reports of "WM Motor's bankruptcy" flooded in. On the afternoon of October 10, WM Motor issued a notice on its official Weibo to respond to the matter.

How does Weimar respond to "bankruptcy"?

The following information can be drawn from this notice: 1. WM Motor is not going bankrupt and liquidating, but is initiating a pre-reorganization procedure to save itself and resolve its financial debt problems; 2. WM Motor will introduce strategic investors from around the world during the pre-reorganization period; 3. Through the pre-reorganization procedure, WM Motor will comprehensively optimize its various departments and business segments to reduce costs, improve efficiency and achieve sustainable development; 4. Creditors, shareholders and investors hope that WM Motor will be reborn, and are actively communicating and negotiating with WM Motor to reach the best solution.

It is not difficult to see that neither WM Motor itself nor its shareholders want WM Motor to fail. An important point in WM Motor's pre-reorganization process is to introduce strategic investors from around the world.

For potential strategic investors of WM Motor, the core concerns are two points: 1. How to exit after obtaining investment returns? 2. How can WM Motor solve its current debt problem?

How to exit after getting a return on investment?

In terms of technical strength, it has full-line business capabilities in design, R&D, production, manufacturing, sales and after-sales, and has core technologies in the fields of three-electric systems, smart cockpits, and autonomous driving. It has both an intelligent manufacturing base and car manufacturing qualifications, and has investment value.

However, in 2020, 2022 and 2023, WM Motor failed to enter the Science and Technology Innovation Board and Hong Kong stocks respectively, and hit a wall in the capital market and fell into the current operating difficulties. After three years of the impact of the epidemic, the global economy has declined. At present, the liquidity of A-shares and Hong Kong stocks has declined significantly, and the valuations of many companies have shrunk. According to incomplete statistics, more than 700 Hong Kong stocks have had zero transactions this year, and a large number of listed companies have been privatized and delisted, and the market environment is sluggish.

Therefore, WM Motor took the initiative to terminate the RTO process with Apollo Smart Mobility in September and turned to the US capital market. As the center of global capital, the US capital market has good market liquidity and corporate valuations. Through the US capital market, WM Motor can obtain more business development opportunities and contact international capital.

Therefore, for potential investors, now is the best time to invest in WM Motor. By helping WM Motor to get out of its current predicament and enter the U.S. capital market, investors will be able to obtain investment and exit quickly.

According to the merger agreement between Kaixin Auto and WM Motor, Kaixin Auto plans to issue a certain number of new shares to acquire 100% of the equity held by WM Motor shareholders. WM Motor will use Kaixin Auto as a shell company to list on the US stock market. The pre-reorganization initiated by WM Motor is paving the way for formal cooperation with Kaixin Auto. In the next step, WM Motor will use Kaixin Auto as a reverse merger to list on the US stock market. Then the shares of WM Motor held by investors will be significantly appreciated.

After Weimar Motors goes public, the stocks held by investors can be freely circulated, and they can sell the stocks on the stock market to get investment returns. This is a win-win situation for investors and Weimar Motors.

Pre-reorganization is actually to solve debt problems

Another concern of investors is the debt repayment issue, which is also the main problem currently faced by WM Motor. This time, WM Motor took the initiative to apply to initiate the pre-reorganization procedure in order to resolve the debt problem.

Pre-reorganization is designed to help the company better cope with financial pressure and debt problems. Through the pre-reorganization process, Weimar negotiated with creditors to extend the debt period, reduce debt interest and other burdens, and obtain a certain amount of time to repay the debt.

During this period, WM Motor can temporarily stop repaying its debts and devote most of its energy to optimizing the company's departments and business segments, fully promoting self-rescue measures, and repaying its debts after the company has gotten out of its difficulties.

In addition to negotiating a debt extension with creditors, the pre-reorganization procedure can also carry out "debt-to-equity swaps", which means converting debts into equity and making creditors shareholders of Weimar. Weimar restructures its corporate debts through pre-reorganization, and can convert the debts held by some creditors into Weimar shares. Creditors directly become shareholders of Weimar, which can effectively protect the legitimate rights and interests of creditors.

Compared with the previous news that WM Motor entered the European and Middle Eastern markets and reached an acquisition agreement with Kaixin Auto, the launch of the pre-reorganization process can be said to be the most important news. This means that WM Motor is fully introspecting and carrying out a full-scale self-rescue operation from the inside out.

With the core technologies that WM Motor has independently mastered and with the help of investors, it is expected to rise rapidly and become competitive after restructuring.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.