Stock Alert: Senmiao Technology Shares Hit 52-Week High

(RTTNews) - Shares of Senmiao Technology Ltd. (AIHS) touched a 52-week high of $2.26 today, and are currently trading at $1.80, up 96 cents or 115.78%. The stock has been trading in the range of $0.26 - $2.26 for the past one year.

The company said its Chinese variable interest entity has secured a RMB50 million or about US$7 million investment from Hongyi Industrial Group Co., Ltd., an affiliate of the largest shareholder of Chengdu Road & Bridge Engineering Co., Ltd., a construction engineering company publicly listed on the A-Share market in China.

This investment was not made in Senmiao directly, but rather into Jinkailong Automobile Leasing Co., Ltd., which Senmiao controls through its majority owned subsidiary, Hunan Ruixi Financial Leasing Co., Ltd.. Jinkailong is the entity through which Senmiao operates its automobile transaction and related services business, primarily in the city of Chengdu.

Pursuant to the agreement governing this JKL Investment Agreement, Hongyi has agreed to make a capital contribution to Jinkailong of RMB50 million or about US$7.0 million over the coming months in consideration of a 27.03% equity interest in Jinkailong.