Financing ·
Highway Holdings raises $7M from David Lazar and plans spin-off of legacy business
HIHOHighway Holdings Ltd
Highway Holdings Limited closed a $7.0 million strategic investment with David Lazar, issuing Series AA and AAA preferred shares at $2.00 per share. The transaction triggers a change of control upon shareholder approval, as the preferred shares will convert to represent approximately 95% of fully diluted common stock. Concurrently, the company plans to spin off its legacy manufacturing business into a new subsidiary for existing shareholders and declare an aggregate cash dividend of $2.0 million to those holders. Leadership has transitioned with Lazar appointed CEO and two directors added, while former executives resigned but will provide transition support. Highway Holdings Limited is an international manufacturer of high-quality parts and products for blue-chip equipment manufacturers.