Cimg Inc. sees significant stock acquisition by major shareholder

Published 04/04/2025, 00:36
Cimg Inc. sees significant stock acquisition by major shareholder

In a recent transaction filed with the Securities and Exchange Commission, CIMG Inc. (NASDAQ:IMG) reported a notable acquisition of shares by a major shareholder. The company, currently trading at $0.51 and showing a market capitalization of approximately $5 million, has seen its stock decline over 63% in the past year. VMADE CO., LTD, a company fully owned by Liu Xiaodong, acquired 2,937,787 shares of CIMG’s common stock. The transaction, which took place on March 18, 2025, was executed at a price of $0.52 per share, amounting to a total purchase value of approximately $1,527,649. According to InvestingPro analysis, the stock is currently trading below its Fair Value, despite showing strong revenue growth of 110% over the last twelve months.

This acquisition increases the total shares owned by VMADE CO., LTD to 7,400,282, reflecting a significant stake in the company. Liu Xiaodong, through his indirect 100% ownership of VMADE CO., LTD, maintains substantial influence over the company.

The filing also noted a previous transaction involving the exercise of warrants, which further consolidates Liu Xiaodong’s position as a key shareholder in CIMG Inc.

In other recent news, CIMG Inc. has entered into an agreement to acquire a 51% equity interest in Shanghai Huomao Cultural Development Co., Ltd. This strategic move involves issuing 200,000 shares of CIMG’s common stock and is expected to close shortly. In a separate development, CIMG completed a $10 million private placement deal, issuing convertible notes and warrants to non-U.S. investors. The funds raised from this transaction are expected to provide additional working capital for the company. Additionally, CIMG has appointed Assentsure PAC as its new independent registered public accounting firm, replacing MaloneBailey, LLP.

MaloneBailey’s previous reports contained no adverse opinions, though they noted concerns about the company’s going concern status. Meanwhile, CIMG faces potential delisting from Nasdaq due to non-compliance with its minimum bid price requirement and a delayed annual report filing. The company has been given a timeframe to rectify these issues to maintain its listing. Lastly, Jian Liu has resigned from CIMG’s Board of Directors, leaving a vacancy in various committees, though the company states there were no disagreements leading to his departure.

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