Kiwa Bio-Tech Products Group Corporation (OTCMKTS:KWBT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
Starting in March 2018, the Company began to use a supply chain financing model, to which the Company’s customers engage with third party financing companies to advance funding on their behalf for the purchase of Company products, without recourse to the Company. In effect, the Company’s customers are required to purchase an insurance product to cover the risk of bad weather or any other reason which they are not able to harvest crops and to realize profits which could affect the customer’s ability to pay after harvesting crops. From the Company’s standpoint, it guarantees the fulfillment of the purchase agreement with the customer. By utilizing this facility, the Company achieves collection on these sales sooner than the prior 3 to 9 months payment scheme.
On June 21, 2018, Shandong Ronghua Bio-Tech Co., Ltd. entered into a Purchase Agreement with Huinong Wanjia Hebei Agricultural Technology Service Co., Ltd, wherein the purchaser agreed to purchase 5,000 units of Kiwa Bio-Tech Products Group Corporation’s Bio-Organic fertilizer at the unit price of US$114.33 dollars (RMB 740.00), for an aggregate purchase amount of US$571,667 dollars (RMB 3,700,000) utilizing the supply chain financing model. This arrangement was supported by the Company’s guarantee that the supplier would fulfill all terms specified in the purchase agreement.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
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About Kiwa Bio-Tech Products Group Corporation (OTCMKTS:KWBT)
Kiwa Bio-Tech Products Group Corporation develops, manufactures, distributes and markets bio-technological products for agriculture. The Company has acquired technologies to produce and market bio-fertilizer. The Company has developed over six bio-fertilizer products with bacillus spp and/or photosynthetic bacteria as its ingredients. The Company’s products contain ingredients of both photosynthesis and bacillus bacteria. The Company’s products include KiwaBiological Organic Fertilizer, Kiwa Yi Mu Ling, Kiwa Di Fu Kang, Kiwa Microbial Specific Fertilizer For Rice, Kiwa Microbial Specific Fertilizer For Corn, Kiwa Microbial Specific Fertilizer For Potato, Kiwa Microbial Specific Fertilizer For Soybean, Kiwa Microbial Specific Fertilizer For Tea Tree, Kiwa Microbial Specific Fertilizer For Tobacco, Kiwa Microbial Specific Fertilizer For Fruit Trees, Kiwa Microbial Specific Fertilizer For Vegetables and Kiwa Full Effect Type Foliar For Golf Turf.