JMU announces $4M private placement, will acquire cryptocurrency solutions unit
JMU announced that the company has entered into definitive agreements regarding a private placement of $4M and an acquisition of cryptocurrency solutions business. Pursuant to a share purchase agreement, the company will issue and sell 609,162,824 ordinary shares to a New York holding company wholly owned by Haohan Xu, the largest shareholder and a director of the company, for a cash consideration of $4M. The company has also entered into a share purchase agreement with Beijing Jiatong Huineng Technology Co., Ltd., its affiliated offshore holding company and Shijie Hu, an independent third party owning Jiatong Huineng Group. Pursuant to the agreement, the company will issue 609,162,824 ordinary shares to Shijie Hu in exchange for the entire ownership in Jiatong Huineng Group. The transactions contemplated under the definitive agreements are subject to customary closing conditions. After the closing of these transactions, Haohan Xu will hold approximately 48.7% of the company while Shijie Hu will hold approximately 18.3% of the company. On a pro forma basis to give effect to these transactions and the previously announced divestment by the company of its food supply chain business in July, the company's stockholders' equity as of June 30, would be approximately $16M.