KINGOLD JEWELRY, INC. (NASDAQ:KGJI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
On January 2, 2018, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. (the “Company”), entered into a Trust Loan Contract in the amount of no more than RMB 1,500 million (equivalent to approximately US$ 230 million) with China Minsheng Trust Co., Ltd. The stated purpose of the trust loan (the “Trust Loan”) is supplementary liquidity needs. The Trust Loan will be issued in installments. Each installment of the Trust Loan has a 24-month term, and the period from issuance date of the first installment to the expiration date of the last installment shall not exceed 30 months. The Trust Loan bears interest at a fixed annual rate of 9.2%. The Trust Loan is secured by 7,887 kilograms of Au9999 gold, pledged by Wuhan Kingold. Our CEO Mr. Zhihong Jia also agreed to guarantee the Trust Loan . The repayment of the Trust Loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.
An English translation of the Trust Loan Contract is filed as Exhibit 10.1 hereto. The foregoing summary of the Trust Loan Contract does not purport to be complete and is qualified in its entirety by reference to such agreement, which is incorporated by reference herein.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in its entirety into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
KINGOLD JEWELRY, INC. ExhibitEX-10.1 2 tv483075_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 Trust Loan Contract Between China Minsheng Trust Co.,…To view the full exhibit click here
About KINGOLD JEWELRY, INC. (NASDAQ:KGJI)
Kingold Jewelry, Inc. designs and manufactures 24-karat gold jewelry and Chinese ornaments, through a variable interest entity relationship with Wuhan Kingold Jewelry Company Limited (Wuhan Kingold). The Company develops, promotes and sells a range of products to the jewelry market across the People’s Republic of China (PRC). The Company offers a range of in-house designed products, including, but not limited to, gold necklaces, rings, earrings, bracelets and pendants. The Company also sells gold bars and coins and other products through agreements with various banks in China. The Company sells its products directly to distributors, retailers and other wholesalers, who then sell its products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores. The Company’s subsidiary, Wuhan Kingold Internet Co., Ltd., is engaged in online sales of jewelry products.