Kandi Technologies Announces Entry into Agreement for Registered Direct Placement of $100Million of Common Stock and Warrants

JINHUA, China, November 20, 2020 -- Kandi Technologies Group, Inc. (the “Company” or “Kandi”) (NASDAQ GS: KNDI), today announced that it has entered into a securities purchase agreement with certaininstitutional investors for a registered direct placement of $100million of 8,849,560 units (the “Units”) of its securities at a purchase price per Unit of $11.30, generating aggregate gross proceeds to the Company of approximately $100 million, before deducting fees to the placement agent and other estimated offering expenses payable by the Company.  EachUnit consisted of one share of our common stock and 0.4 warrants to purchase a share of our common stock.  The warrants have an exercise price of $14.50 per share, a term of 30 months,and are exercisable upon issuance.

The net proceeds from this offering are expected to be used for general working capitalpurposesincluding research and development of EV sports car models andexpenditures necessary to assure that our EV models comply with all necessary requirements forthe entry into the U.S. market. The completion of the placement is expected to occur no later than November 24, 2020, subject to the satisfaction of customary closing conditions.

FT Global Capital, Inc. acted as the exclusive placement agent for the transaction.

These securities are being offered through a prospectus supplement pursuant to the Company’s effective shelf registration statement and base prospectus contained therein. A shelf registration statement (SEC Filing No. 333-249585) relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (the “SEC”) on October 29, 2020. A prospectus supplement related to the offering will be filed with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

For further details of this transaction, please see the Form 8-K to be filed with the SEC.