Wecast Network enters into capital increase agreement
Wecast Network, through its PRC subsidiary Shanghai Blue World Investment Management Consulting Limited, entered into a capital increase agreement with Guizhou Sun Seven Stars Technology Company Limited, a PRC company, which is an affiliate of the company's chairman Bruno Wu and Wecast Media Group Limited , a Hong Kong company, one of the Company's largest shareholders, controlled by Bruno Wu. Pursuant to the terms of the Capital Increase Agreement, Guizhou Sun Seven Stars Technology Trading Platform Limited, 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. The total registered capital of GZ will be RMB 85 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 GZ's 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 company's 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 and SaaS infrastructure.