WECAST NETWORK, INC. (NASDAQ:WCST) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement |
On March 14, 2017, Wecast Network, Inc. (the Company), through
its PRC subsidiary Shanghai Blue World Investment Management
Consulting Limited (SVG WFOE), entered into a Capital Increase
Agreement (the Capital Increase Agreement) with Guizhou Sun Seven
Stars Technology Company Limited, a PRC company (GZSSS), which is
an affiliate of the Companys chairman Bruno Wu and Wecast Media
Group Limited (formerly known as Sun Seven Stars Hong Kong
Cultural Development Limited), a Hong Kong company, one of the
Companys largest shareholders, controlled by Bruno Wu.
to the terms of the Capital Increase Agreement, Guizhou Sun Seven
Stars Technology Trading Platform Limited (GZ), a PRC company
formed in February 2017 and currently 100% owned by SVG WFOE,
will issue new shares equal to 94.12% of its equity to GZSSS in
exchange for RMB 80 million (approximately $11.6 million). The
total registered capital of GZ will be RMB 85 million
(approximately $12.3 million). The parties will share the
dividends and other profits of GZ at a ratio of 70% to the
Company and 30% to GZSSS.
In addition, the Company will have the right to appoint two of
GZs three board members, the chairman of the board and the chief
executive officer. GZSSS will have the right to appoint one board
member, the supervisor and the chief financial officer.
GZ is a company created to be (i) a technology based IP exchange
platform that generates brand licensing opportunities and value
added business data acquisition to support the Companys B2B
business, and (ii) a technology and operating company that
acquires and analyses big data extracted from international trade
and financing to drive Artificial Intelligence based services,
utilizing a PaaS (Platform as a Service) and SaaS (Software as a
Service) infrastructure.
The foregoing description of the Capital Increase Agreement is
not purported to be complete and is qualified in its entirety by
reference to the complete text of such agreement which will be
filed as exhibit to the Companys next Quarterly Report on Form
10-Q.
About WECAST NETWORK, INC. (NASDAQ:WCST)
Wecast Network, Inc., formerly YOU On Demand Holdings, Inc., is a content video on demand (VOD) service provider with operations in the People’s Republic of China. The Company, through its subsidiaries and variable interest entity, provides content and integrated value-added service solutions for the delivery of VOD and paid video programming to digital cable providers, Internet Protocol Television (IPTV) providers, over-the-top (OTT) streaming providers, mobile manufacturers and operators, as well as direct customers. The Company operates through video content and media segment. The Company is a multi-platform entertainment company delivering content, including Hollywood and China-produced movie titles, as well as children’s programming, to customers’ mobile and television screens across China through subscription video on demand (SVOD) and transactional video on demand (TVOD) services. WECAST NETWORK, INC. (NASDAQ:WCST) Recent Trading Information
WECAST NETWORK, INC. (NASDAQ:WCST) closed its last trading session up +0.03 at 2.13 with 30,917 shares trading hands.
