In a significant expansion move, Marvion Inc., a finance services company incorporated in Nevada, has entered into a definitive agreement to acquire United Warehouse Management Corp. (UWMC), a British Virgin Island corporation. The transaction, which took place on August 15, 2024, involves the exchange of all issued and outstanding securities of UWMC for 148,148,148 shares of Marvion Inc.'s common stock.
The shareholders of UWMC will transfer 4,000 shares of UWMC in return for the common stock of Marvion Inc. at a par value of $0.0001 per share. Additionally, Marvion Inc. has agreed to make earnout payments totaling $5.5 million, contingent upon UWMC meeting certain net income targets over nine performance periods, ending semi-annually on June 30 and December 31. These earnout payments will be made in the form of interest-free promissory notes.
The SEA outlines the distribution of shares and earnout payments among the UWMC shareholders, with significant portions allocated to Pang Wai Kwong, Lee Kwok Chuen, Lau Siu Mee, Ho Kai Ki Decky, Lau Kam Wai, Kam Tsz Ching, Chan Wing Man, Chan Wan Man, Chan Sze Yu, Fong Hiu Ching, and Young Chi Kin Eric.
Notably, Chan Sze Yu holds key executive positions within Marvion Inc. as CEO, CFO, Secretary, and Director. Young Chi Kin Eric is a major preferred stockholder, wielding considerable voting power equivalent to 200 votes per share of Series A Preferred Stock.
The completion of this acquisition is expected to enhance Marvion Inc.'s operational capabilities and broaden its market reach. The transaction details, including the Share Exchange Agreement and the promissory note forms, have been filed with the SEC and are incorporated by reference into this report.
The article is based on an 8K filing.
In other recent news, Nevada-based finance services company, Marvion Inc., has made significant strides in its expansion strategy. The company recently finalized a substantial stock purchase agreement involving the transfer of 10 million shares of Series A Preferred Stock to individuals LEE Ying Chiu Herbert and Young Chi Kin Eric.
The agreement also encompasses an assumption of approximately $288,089 in liabilities by Mr. Young, to be settled in installments as outlined in the agreement.
In tandem with this strategic move, Marvion Inc. has appointed Chan Sze Yu to the positions of Chief Executive Officer, Chief Financial Officer, Secretary, and Director. Concurrently, the company is engaged in discussions with Mr. Young regarding the potential acquisition of one or more operating businesses. These acquisitions are expected to take place following the finalization of the transactions stipulated in the stock purchase agreement.
InvestingPro Insights
As Marvion Inc. forges ahead with its acquisition of United Warehouse Management Corp., investors may find value in considering the financial health and stock performance of the company. Marvion Inc. holds more cash than debt on its balance sheet, which could provide financial flexibility post-acquisition. However, the company has not been profitable over the last twelve months, and its short-term obligations exceed liquid assets, signaling potential liquidity risks that merit attention.
From a stock perspective, Marvion Inc. has experienced significant price volatility, often moving inversely to market trends. This characteristic could appeal to certain investors looking for non-correlated assets. The stock price has declined substantially over the past year, with a one-year price total return of -99.31%, highlighting the risks involved. Moreover, Marvion Inc. trades at a low revenue valuation multiple, suggesting that the market may be undervaluing the company's sales relative to its stock price, according to the InvestingPro Tips.
InvestingPro Data indicates a market capitalization of 1.36 million USD and a gross profit margin of 42.89% for the last twelve months as of Q1 2024. These metrics, alongside a price of 0.03 USD at the previous close, are critical for investors assessing the company's valuation and operational efficiency. For those seeking additional insights, InvestingPro offers more tips, which can be found at https://www.investing.com/pro/MVNC.
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