TAKUNG ART CO., LTD (OTCMKTS: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
On November 14, 2016, our Hong Kong subsidiary, Hongkong Takung
Assets and Equity of Artworks Exchange Co., Ltd. entered into a
loan agreement with Merit Crown Limited, a Hong Kong company to
borrow US$1.48 million to meet its working capital needs (US
Dollar Loan). Interest shall accrue at a rate of 8% per annum
pro-rated to the actual loan period, which shall be from the date
the loan amount is made through October 31, 2017.
Also on November 14, 2016, our PRC subsidiary, Takung (Shanghai)
Co., Ltd entered into an interest- free loan agreement to lend an
individual, Xiaohui Wang, a national of the Peoples Republic of
China RMB10.275 million (equivalent to US$1.48 million) for the
same duration as the aforementioned loan (RMB Loan). This loan is
guaranteed by Chongqing Wintus (New Star) Enterprises Group and
Ms. Wang is a shareholder and the legal representative of it.
The US Dollar Loan is to provide Hongkong Takung Assets and
Equity of Artworks Exchange Co., Ltd with sufficient US
Dollar-denominated currency to meet its working capital
requirements. It is secured by the RMB Loan of equivalent amount
by its subsidiary to an individual and guarantor affiliated with
the lender of the US Dollar Loan. It is the understanding between
the parties that when the US Loan is repaid, the RMB Loan will
similarly be repaid.
The foregoing description of the US Dollar Loan agreement and the
RMB Loan agreement does not purport to be complete and is
qualified in its entirety by the US Dollar Loan agreement and the
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
Item 9.01 Financial Statements and Exhibits
Loan Agreement between Hongkong Takung Assets and Equity of
Artworks Exchange Co., Ltd. and Merit Crown Limited dated
November 14. 2016.
Loan Agreement between Takung (Shanghai) Co., Ltd, Xiaohui
Wang and Chongqing Wintus (New Star) Enterprises Group dated
November 14. 2016.
About TAKUNG ART CO., LTD (OTCMKTS: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 (OTCMKTS:TKAT) Recent Trading Information
TAKUNG ART CO., LTD (OTCMKTS:TKAT) closed its last trading session up +0.03 at 6.88 with shares trading hands.