CIMG completes $55 million stock sale in exchange for 500 Bitcoin

BEIJING - CIMG Inc. (NASDAQ:IMG), a digital health and sales development company with a market capitalization of $10 million, announced Tuesday it has closed the previously announced sale of 220 million shares of its common stock in exchange for 500 Bitcoin. The company’s stock has shown significant volatility, declining 64% year-to-date.

The transaction, valued at $55 million with shares priced at $0.25 each, represents part of the company’s financial management strategy, according to a press release statement.

The company indicated it is committed to a long-term Bitcoin holding strategy, viewing the cryptocurrency acquisition as a way to build reserves and establish what it describes as a "solid value foundation" for investors.

Wang Jianshuang, Chairwoman and CEO of CIMG, stated the company aims to "pioneer a new era of Bitcoin financial applications" and plans to further increase its digital asset reserves. The company also expressed interest in pursuing collaborations across AI and crypto ecosystems. Analysts expect revenue growth of 6.87% for fiscal year 2025, according to InvestingPro, which offers 16 additional investment insights for this stock.

The securities were sold in a private placement under Regulation S of the Securities Act of 1933, meaning they cannot be offered or sold in the United States except pursuant to registration requirements or applicable exemptions.

CIMG specializes in using technology and marketing to enhance its partners’ sales growth and commercial value. The company’s brand portfolio includes Kangduoyuan, Maca-Noni, Qianmao, Huomao, and Coco-mango.

In other recent news, CIMG Inc. disclosed a $55 million private placement deal with non-U.S. investors, involving the issuance of 220,000,000 shares of common stock to be paid in bitcoin. The transaction is expected to close by September 2025, pending customary conditions. Additionally, CIMG Inc. has entered a $4 million convertible note agreement with non-U.S. investors, with notes bearing a 7% annual interest rate and maturing in August 2026. In another development, CIMG Inc.’s subsidiary, Zhongyan Shangyue Technology Co., Ltd., plans to acquire a 51% stake in Shenzhen Zhimeng Qiyang Technology, valued at RMB13,000,000. The acquisition agreement includes the appointment of Mr. Li Shengqing as CEO of Shenzhen Zhimeng Qiyang Technology. CIMG Inc. also signed a Memorandum of Understanding with FLock Technology Holdings to develop an AI-assisted wellness product, LifeNode, and considers acquiring FLOCK tokens as a treasury reserve. Meanwhile, CIMG Inc. received an additional delisting notice from Nasdaq due to non-compliance with the minimum bid price requirement, with a hearing set for August.

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