KAIXIN Doubles Share Payout for Taohaoche Deal After 70% Stock Slide
Kaixin will issue 10 million extra Class A shares to the seller of Hongkong Taohaoche after its stock fell from above $5.00 to under $1.50.
Kaixin Holdings (KXIN) told the SEC in a Form 6-K filed on September 4, 2026 that its board has approved the issuance of an additional 10,000,000 Class A ordinary shares to the seller of Hongkong Taohaoche Limited, doubling the equity consideration for a deal signed just over a week earlier. The reason given is blunt: the company's share price has collapsed since the agreement was signed, gutting the value of the original payment.
The underlying transaction dates from August 26, 2026, when Kaixin, its wholly owned subsidiary Jet Sound Hong Kong Company Limited, seller Hsiao-Ching Chiu and AUTOA2A. LTD. entered into a securities purchase agreement. Under that deal the purchaser acquired the entire equity interest in Hongkong Taohaoche, which became an indirect wholly owned subsidiary of Kaixin.
The original consideration was 10,000,000 newly issued Class A ordinary shares, held in escrow and released only against performance targets set out in the purchase agreement. The company disclosed the arrangement in a 6-K filed on August 27, 2026.
In the new filing Kaixin states that since the execution date the stock has fallen from over $5.00 per share to under $1.50 per share, and that the consideration shares have lost more than 70% of their market value. The board approved the top-up on September 3, 2026.
The additional shares carry the same structure as the first tranche: they sit in escrow and are released subject to the six-year performance targets in the purchase agreement. That means the seller does not receive them outright, but the potential dilution to existing holders doubles if the targets are met.
The 6-K is incorporated by reference into Kaixin's registration statements on Form F-3 (File No. 333-291748) and Form S-8 (File No. 333-296850). The filing was signed by chief financial officer Yi Yang.
For shareholders the material point is that a sharp decline in the share price has directly increased the number of shares the company must issue for the same asset, rather than reducing the cost of the acquisition.
This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.
