TD Holdings Inc (NASDAQ: GLG) is a stocks trading service firm in China. It announced that it had signed a non-binding purpose with Guangdong Jinbochuang Special Purpose Vehicle industry and Hunan Jinmeike New Material industry on July 26, 2021. It will develop both Jinmeike and Jinbochuang to enter into the logistics and new energy automobile enterprise.
Under the LOI, based on the firm’s due diligence and the parties’ negotiation, the firm decided to obtain 100% of Jinbochuang and Jinmeike in exchange for a good amount of shares of the firm’s common stock to be determined. Management anticipates the accession will be complete within 180 days from the LOI date, determining good due persistence, and the parties can step into a definitive agreement. Either party to the LOI may discontinue the LOI unilaterally. Moreover, as the transaction proceeds, the firm will publicly disclose expected information through SEC filings or press releases.
Ms. Renmei Ouyang’s Statement
Chief Executive Officer Ms. Renmei Ouyang said that they mainly aimed at large-scale business transactions and nonferrous metals trading and supply chain services which are intimate with logistics and warehousing for the past decade. The intended accession of Jinbochuang and Jinmeike is not only in the queue with their growth strategy of improving their industrial chain, however, also corresponds to the national strategy of ‘Made in China 2025’ and the industry tendency of manufacturing lightweight vehicles. Furthermore, she adds that they expect to incorporate portable new materials, portable trucks, applications into their global industry chain.
Completion of the agreement is subject to due diligence investigations by the relevant parties, the negotiations, and execution of an explicit share exchange agreement, the gratification of the conditions negotiated therein along with the approval of the firm’s Board of Directors, approval of Nasdaq of the listing of shares published in the transaction, and the satisfaction of other customary closing conditions. Moreover, there can be no confirmation to step into an explicit agreement or consummate the proposed transaction.