WONHE HIGH-TECH INTERNATIONAL, INC. (OTCMKTS:WHHT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01Entry into a Material Definitive Agreement
On January 12, 2016 the Registrant’s operating subsidiary,
Shenzhen Wonhe Technology Co., Ltd. (Shenzhen Wonhe), entered
into an agreement titled Cooperative Agreement on Wireless
Network Coverage Project in Beijing Area with Guangdong Kesheng
Enterprise Co., Ltd. (Guangdong Kesheng). The agreement
contemplated that the two parties would work together to develop
a wireless network in certain designated areas of Beijing. The
commercial purpose of the network was to serve as a vehicle for
advertising and marketing, with the income to be shared between
Shenzhen Wonhe and Guangdong Kesheng. Shenzhen Wonhe committed in
the agreement to make a capital contribution of 382,990,000 RMB
(USD $55.63 million) to the project. Shenzhen Wonhe also
committed to develop the data systems that will be used by the
network. Guangdong Kesheng committed to supervise the engineering
and construction, coordinate relationships with local government,
and manage the network’s operations.
On November 30, 2016 Shenzhen Wonhe and Guangdong Kesheng signed
an amendment to the January agreement. The amendment, titled
Cooperative Agreement on Wireless Network Coverage Project in
Beijing Area, terminates the participation of Shenzhen Wonhe in
the construction and operation of the wireless network, and also
terminates the commitment of Shenzhen Wonhe to develop the data
systems used by the network. Shenzhen Wonhe has no further
obligation to contribute capital to the project, and will receive
no distribution of income from the project. Shenzhen Wonhe will,
however, supply 36,300 routers for the project prior to the end
of 2017, and Guangdong Kesheng will pay Shenzhen Wonhe 1,800 RMB
($261) for each router.
As of November 30, 2016 Shenzhen Wonhe had contributed to the
wireless network project cash, equipment, engineering, and a
pilot project in the Tongzhou District of Beijing. The total
contribution of 175,755,641 RMB (USD$25.53 million) will be
repaid to Shenzhen Wonhe in three equal annual installments; the
unpaid portion of that obligation will accrue interest at 4.75%
per annum.
Item 9.01Financial Statements and Exhibits
Exhibits
| 10-a |
Cooperative Agreement on Wireless Network Coverage Project in Beijing Area dated January 2016 between Guangdong Kesheng Enterprise Co., Ltd. and Shenzhen Wonhe Technology Co., Ltd. – filed as an exhibit to the Current Report on Form 8-K filed on January 20, 2016. |
| 10-b |
CooperativeAgreement on Wireless Network Coverage Project in Beijing Area dated November 30, 2016 between Guangdong Kesheng Enterprise Co., Ltd. and Shenzhen Wonhe Technology Co., Ltd. |
About WONHE HIGH-TECH INTERNATIONAL, INC. (OTCMKTS:WHHT)
Wonhe High-Tech International, Inc. is a holding company. The Company’s business operations are conducted in the People’s Republic of China (PRC) through its subsidiary, Shenzhen Wonhe Technology Co., Ltd. (Shenzhen Wonhe). Shenzhen Wonhe specializes in research and development and the marketing of business and personal information technology products that provide third party application services. It is focused on development of a home media center, the HMC720. HMC720 is a data storage, management and control center for household equipment, and a central processing center, which uses remote wireless technology to allow a user to control various devices while at home or remotely when away from home. HMC720 provides a software platform that has the functional characteristics of both a family security device and a direct television receiver, with the ability to access television and video on demand. It also offers Smart Routers, which include YLT-100S Wifi Router and YLT-300S Wifi Router. WONHE HIGH-TECH INTERNATIONAL, INC. (OTCMKTS:WHHT) Recent Trading Information
WONHE HIGH-TECH INTERNATIONAL, INC. (OTCMKTS:WHHT) closed its last trading session 00.0000 at 0.0900 with 15,150 shares trading hands.