TAKUNG ART CO., LTD (NYSEMKT:TKAT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. | |
| Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
On July 18, 2016, our Hong Kong subsidiary, Hongkong Takung
Assets and Equity of Artworks Exchange Co., Ltd. (Hongkong
Takung) entered into a loan agreement with Merit Crown Limited, a
Hong Kong company (Merit Crown) to borrow US$1.5 million to meet
its working capital needs. On August 24, 2016, HongKong Takung
entered into another loan agreement with Merit Crown to borrow
US$2 million. Interest on both these US$ loans accrue at a rate
of 8% per annum pro-rated to the actual loan period, which was
due to expire on December 31, 2016.
On July 18, 2016 and on August 24, 2016, our PRC subsidiary,
Takung (Shanghai) Co., Ltd entered into interest-free loan
agreements to lend an individual, Xiaohui Wang, a national of the
Peoples Republic of China (Wang) RMB10.08 million (equivalent to
US$1.5 million) and RMB13.35 million (equivalent to US$2 million)
for the same duration as the aforementioned loans. Both RMB loans
are guaranteed by Chongqing Wintus (New Star) Enterprises Group
and Wang is a shareholder and the legal representative of it.
Wang and Chongqing Wintus (New Star) Enterprises Group are
affiliated with Merit Crown. Both RMB loans expired on December
31, 2016 and the principal loan amounts were repaid on January 6,
2017.
On January 4, 2017, Hongkong Takung and Merit Crown entered into
an extension of loan agreement to amongst other things, extend
the term of the US$ loans through March 31, 2017 (the Extension
of Loan Agreement). Hongkong Takung shall pay a total of
US$69,212 (being the interest on the US$ loans based on an annual
interest rate of 8% and 360-day year for the period from January
1, 2017 to March 31, 2017) in a lump sum to Merit Crown by
January 13, 2017. The principal loan amounts shall be payable on
March 31, 2017.
On January 4, 2017, our PRC subsidiary, Takung Cultural
Development (Tianjin) Co., Ltd. entered into an interest-free
loan agreement to lend Wang RMB24,461,505 (equivalent to US$3.5
million) with the principal loan amount payable on March 31, 2017
(the RMB Loan). The RMB Loan is to secure the loan amounts under
the Extension of Loan Agreement and is guaranteed again by
Chongqing Wintus (New Star) Enterprises Group. It is the
understanding between the parties that when the loan amounts
under the Extension of Loan Agreement are repaid, the RMB Loan
will similarly be repaid.
On April 4, 2017, Hongkong Takung and Merit Crown entered into a
further extension of loan agreement to amongst other things,
extend the term of the US$ loans through December 31, 2017 (the
Second Extension of Loan Agreement). Hongkong Takung shall pay a
total of US$213,080.67 (being the interest on the US$ loans based
on an annual interest rate of 8% and 360-day year for the period
from April 1, 2017 to December 31, 2017) in a lump sum to Merit
Crown by April 10, 2017. The principal loan amounts shall be
payable on December 31, 2017.
On April 4, 2017, Takung Cultural Development (Tianjin) Co., Ltd,
Wang and Chongqing Wintus (New Star) Enterprises Group agreed to
extend the repayment date of the RMB Loan to December 31, 2017 in
order to mirror the principal repayment date in the Second
Extension of Loan Agreement (the Extension of RMB Loan
Agreement).
The foregoing description of the Second Extension of Loan
Agreement and the Extension of RMB Loan Agreement does not
purport to be complete and is qualified in its entirety by the
Second Extension of Loan Agreement and the Extension of RMB Loan
Agreement, a copy of which are attached as Exhibits 10.1 and 10.2
to this Current Report on Form 8-K and are incorporated herein by
reference.
The information in this Current Report on Form 8-K (the Form 8-K)
is being furnished and shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended
(the Exchange Act), or otherwise subject to the liabilities of
that section, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended, or the
Exchange Act, whether made before or after the date of this Form
8-K, except as shall be expressly set forth by specific reference
in such filing. The information in this Form 8-K will not be
deemed an admission as to the materiality of any information in
this Form 8-K that is required to be disclosed solely by
Regulation FD.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
| Exhibit No. |
Description |
| 10.1 |
The Second Extension of Loan Agreement between Hongkong Takung Assets and Equity of Artworks Exchange Co., Ltd. and Merit Crown Limited dated April 4, 2017. |
| 10.2 |
The Extension to RMB Loan Agreement between Takung Cultural Development (Tianjin) Co., Ltd., Xiaohui Wang and Chongqing Wintus (New Star) Enterprises Group dated April 4, 2017. |
About TAKUNG ART CO., LTD (NYSEMKT:TKAT)
Takung Art Co., Ltd., formerly Cardigant Medical Inc., is a holding company. The Company, through HongKong Takung Assets and Equity of Artworks Exchange Co., Ltd. (HongKong Takung), and its subsidiaries, operates an electronic online platform located at www.takungae.com for artists, art dealers and art investors to offer and trade in artwork. Through HongKong Takung and its subsidiaries Takung (Shanghai) Co., Ltd and Takung Cultural Development (Tianjin) Co. Ltd, the Company offers on-line listing and trading services that allow artists/art dealers/owners to access an art trading market where they can engage with a range of investors. Its platform also makes investment in high-end and artwork accessible to ordinary people without financial resources. The Company’s platform is an all-electronic trading system, which consists of host computers, client-side terminals and related communication system. Its trading system supports the trading and payment, and settlement of artwork units. TAKUNG ART CO., LTD (NYSEMKT:TKAT) Recent Trading Information
TAKUNG ART CO., LTD (NYSEMKT:TKAT) closed its last trading session up +0.02 at 7.03 with 2,875 shares trading hands.