EHang announces $30 million Share Repurchase Programme

China-based electric vertical take-off and landing (eVTOL) aircraft manufacturer, EHang, recently announced that its Board of Directors has approved a Share Repurchase Programme. 

Under this programme, the company may buy back up to $30 million of its American Depositary Shares (ADSs) or ordinary shares over the next 12 months.

Huazhi Hu, Founder, Chairman, and CEO of EHang, highlighted the company’s confidence in its growth trajectory through the initiative. 

“This Share Repurchase Program underscores our confidence in EHang’s long-term growth potential as well as our capability in continuously delivering value to our shareholders,” said Hu. 

He added, “Looking ahead, we remain focused on advancing our leadership in providing safe, pilotless, and sustainable eVTOL solutions in the Urban Air Mobility sector, while maintaining a disciplined approach to capital allocation to ensure sustainable growth and profitability.” 

Moreover, the company has outlined its plans for how the repurchases will be conducted. 

The transactions may occur through open market purchases, privately negotiated deals, block trades, or other legally permissible methods. 

Importantly, decisions regarding the timing and amount of these repurchases will be made by the company’s management. 

They will carefully consider factors such as price, trading volume, market conditions, working capital needs, and general business considerations.

Additionally, EHang plans to fund the repurchase programme using its existing cash reserves and cash generated from operations. 

The programme will also comply with applicable federal securities laws, including Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934.

In other recent news, EHang announced a strategic investment of over $22 million from Zhuhai Enpower Electric, a leading Chinese new energy vehicle power systems provider, and an undisclosed institutional investor based in the UAE.

Both investors have committed to a 180-day lock-up period, underscoring their confidence in EHang’s growth potential.