Ruisi Education said that it is in the process of merger and acquisition negotiations and is expected to enter the field of electric vehicles

On January 20, 2019, Ruisi Education (Nasdaq:REDU) submitted an announcement before the Us Securities and Exchange Commission (SEC) that Ruisi Education is expected to enter the field of electric vehicles through mergers and acquisitions, and negotiations are currently underway.

Ruisi Education's statement mentioned that the company received a relevant notice from NASDAQ on January 11, 2022, requiring Ruisi to hold a hearing within the specified time, otherwise the delisting process will be initiated. At the same time, the NASDAQ Listing Qualification Department determined that Ruisi Education has become an "open shell" as defined in NASDAQ Listing Rule 5101. Nasdaq issued the notice because Rhys had not filed its interim balance sheet and income statement with the SEC for the period ended June 30, 2021.

Responding to NASDAQ, Reese said it had filed its interim balance sheet and income statement for the period ended June 30, 2021 on January 11, and has since re-complied with nasdaq listing rules. In addition, Ruisi Education has applied to hold a hearing and will submit proof of compliance with the qualification requirements of the listed company.

Previously, on December 30, 2021, Ruisi Education had sold most of its assets. Ruisi Education said it is actively pursuing strategic business opportunities, including business activities that will generate revenue.

In the announcement, Ruisi Education also mentioned that on January 6, the company received a non-binding business merger proposal from the professional technology platform, according to which the counterparty will contribute its business in the electric vehicle ecosystem in exchange for the newly issued Ruisi shares. Ruisi Education's announcement did not disclose counterparty information.

Ruisi Education said that the two sides agreed to conduct exclusive negotiations for 28 days from January 17, and the negotiation time can be extended by 14 days as long as the two sides negotiate in good faith. There can be no assurance that the proposed transaction or any other similar transaction will be approved or completed.

The transaction was evaluated and negotiated by Huaxing Securities (Hong Kong) Limited as its financial adviser and Kai Yi as its legal adviser.

According to the unaudited financial performance report of the second quarter ended June 30, 2021 released by Ruisi Education, Ruisi Education achieved revenue of 257 million yuan in Q2 2021, an increase of 55.6% year-on-year; The net loss was 52.662 million yuan, and the loss narrowed by 9.3% year-on-year.