Uxin (UXIN), a leading online used car dealer in China, will receive an investment of up to RMB 1.97 billion ($300 million U.S.) from two Asian funds, according to the company.

The company has entered into a binding term sheet with two funds that have agreed to purchase convertible preferred shares from Uxin. The completion of the transaction is subject to the parties’ execution of definitive agreements and customary closing conditions.

The Covid-19 pandemic damaged Uxin’s business last year. In the third quarter of 2020, the company recorded a net loss of RMB264 million, and ran a negative total equity of RMB1.91 billion, largely due to a significant increase in long-term debt.

Uxin’s share price rallied on the news of the investment deal. The stock closed 68.38% higher for the day.

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