Fortune Valley Treasures, Inc. Enters into Loan Agreement with Yumin Lin
December 22, 2020 at 04:11 pm
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Fortune Valley Treasures, Inc. entered into a loan agreement with Yumin Lin, Chairman, Chief Executive Officer, President and Secretary of the Company, pursuant to which the Lender made interest-free and unsecured loans to the Company for working capital needs. As of December 16, 2020, there was an aggregate principal amount of RMB 5,203,596 outstanding under the Loan Agreement. On December 16, 2020, the board of directors of the Company approved to issue an aggregate of 485,439 shares of common stock of the Company, par value $0.001 per share, to the Lender in lieu of the full payment of the Loan Balance in cash. The Lender agreed to release the Company from all claims held by the Lender in respect of the Loan Balance. The Lender further agreed and acknowledged that upon receipt of the Conversion Shares in connection with the Debt Conversion, all of the existing obligations of the Company with respect to the Loan Balance shall be deemed to be satisfied. On December 16, 2020, the Company issued the Conversion Shares to the Lender in connection with the Debt Conversion. The issuance of the Conversion Shares was exempt from registration pursuant to Section 3(a)(9) of under the Securities Act of 1933, as amended. No commission or other remuneration was paid in connection with the Debt Conversion.
Fortune Valley Treasures Inc is a Canada-based company engaged in alcohol distribution business sector. The Company through its subsidiaries, engages in the business of retail and wholesale of a wide spectrum of wine products in China and Hong Kong. It offers a variety of wine products, including dry red wine, dry white wine, rose wine, sweet wine and more. The Company sells about 40 kinds of different brands of wine, most of which are imported from France and Spain. Its product portfolio is comprised of wines relevant particularly to Chinese customers, such as Le Petit Tour, Los Beceux, Sorlada, Lapso, Saint Martin, Seguelongue and Saint Emilion.