CBAK Energy Technology plans merger to redomicile in Cayman Islands

CBAK Energy Technology, Inc. (NASDAQ:CBAT) announced Tuesday that it has entered into a merger agreement with its wholly owned subsidiary, CBAK Energy Technology Limited, incorporated in the Cayman Islands. The agreement, signed on Monday, outlines a proposed redomicile merger in which CBAK Energy Technology, Inc., currently incorporated in Nevada, will merge with and into CBAK Energy Technology Limited, with the Cayman Islands entity continuing as the surviving company.

According to the agreement, each outstanding share of CBAK Energy Technology, Inc. common stock will be converted into the right to receive one ordinary share of the Cayman Islands company upon completion of the merger. The assets and liabilities of the new entity will remain the same as those of the current company immediately prior to the merger.

The merger is subject to several closing conditions, including approval by the company’s stockholders, effectiveness of a registration statement on Form F-4 filed by CBAK Energy Technology Limited, and receipt of required regulatory approvals. The company stated that the merger agreement has been approved by the boards of both companies and, if all conditions are met, the transaction is expected to close by the end of 2025.

At the effective time of the merger, all existing equity compensation plans and outstanding equity awards issued under CBAK Energy Technology, Inc. will be adopted and assumed by the Cayman Islands entity on substantially the same terms. In addition, the directors and officers of the Nevada company will become the directors and officers of the Cayman Islands company.

The company’s board retains the discretion to terminate the merger agreement at any time prior to the effective time, including after stockholder approval.

This information is based on a statement in a press release filed with the U.S. Securities and Exchange Commission.

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