EHang inks up to $20 million AAM equity deal with China ‘new area’
China-based advanced air mobility (AAM) aircraft manufacturer EHang has struck an investment deal worth up to $20 million with a Chinese state-backed urban and economic development zone, suggesting the publicly listed company needs more cash than it possesses to continue working toward certification and production.
EHang said it has inked a strategic partnership accord with Shandong province’s Qingdao West Coast New Area, which involves a binding $10 million capital stake in the AAM company, and the option for another $10 million purchase in the future.
In addition to the ownership position, EHang said the agreement calls for it to develop Qingdao West Coast New Area as an international showcase of its AAM vehicles and services, and to establish a national center there for its aerial firefighting activities.
Qingdao West Coast New Area is one of China’s designated new urban districts that receive state or regional financing and other support…