ChineseInvestors.com, Inc. (OTCMKTS:CIIX) Files An 8-K Unregistered Sales of Equity Securities

ChineseInvestors.com, Inc. (OTCMKTS:CIIX) Files An 8-K Unregistered Sales of Equity Securities
Item 3.02 Unregistered Sales of Equity Securities

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The Company has elected to extend the time of the Private Placement of its Series D-2017 Convertible Preferred Stock through January 24, 2019 or until the placement is fully subscribed, if earlier. As of May 1, 2018, the Company had issued 5,933,050 shares of its Series D-2017 Convertible Preferred Stock for an aggregate investment of $5,933,050.

The Company has determined to issue a simple agreement for future tokens or SAFT in which the Company will agree to issue cryptocurrency to all investors subscribing for Series D-2017 shares, including past Series D-2017 investors in the event that the Company completes an initial coin offering or an initial securities offering of cryptocurrency within the time frame specified in the SAFT.

Item 8.01 Other Events

In March 2018 the Chinese Government temporarily banned all alcohol sales while annual congressional meetings were taking place, including sales via Today's Headlines, the internet salesplatform that the Company’s wholly owned foreign enterprise (WOFE) in China and its subsidiaries were using for their on-line sales which accounted for virtually all of their business.

After the ban on alcohol sales was lifted, in April 2018, the government prevented new subscribers from downloading the Today's Headlines mobile application pending its investigation of consumer complaints about some sellers marketing counterfeit or fake products on the site. During this investigation, limited data was provided by Today's Headlines to existing sellers to allow them to run advertisements to reach the platform's existing subscribers.

Currently, new users can now download the mobile application, and although the governmental investigation did not target the Company's baiju products being sold online, the Company's sales for the last two weeks of April were extremely low and this decline in sales is anticipated to continue until the platform once again begins providing sufficient data to sellers to allow them to run new advertisements. It is not certain when this will happen; therefore, the Company cannot specifically determine when it will be in a position to reach its previously projected sales goals.

In order to reach a larger market and meet or increase the previously projected sales revenues, the Company is looking to establish a new sales channel on the Today's Headline platform in the Chengdu area, covering southwest China. The Company's current sales channel targets eastern China, including Shanghai.

The WOFE and its subsidiaries were to be the subject of the planned spinoff scheduled for May 31, 2018. Because the companies to have been spun off have had their principal source of revenue virtually eliminated as indicated above, at least for the time being, conducting the spinoff at this time is not economically indicated. The Company is informed and believes that its sales channel will resumenormal operations in the near future.


About ChineseInvestors.com, Inc. (OTCMKTS:CIIX)

Chineseinvestors.com, Inc. specializes in providing real-time market commentary and analysis in the Chinese language. The Company’s services are mainly offered to Chinese speaking individuals that are resident in the United States and Canada. The Company offers subscription services to provide education about investing and news and analysis on the stock market, as well as news about particular stocks that the Company is following. The Company offers several types of subscription-based services and serves various types of investors and traders as depicted in its subscriber services offerings. The Company’s market coverage includes the general range of the United States financial markets, Chinese Shares and the other global markets. The Company’s service offerings permit users to subscribe to several of its service packages. As of May 1, 2015, the Company had over 1,400 active paying subscribers and approximately 22,000 free subscribers.

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