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JX Luxventure Group Inc. (NASDAQ:JXJT) announced Wednesday that it has entered into a new debt exchange agreement with Sun Lei, the company’s Chief Executive Officer, Interim Chief Financial Officer, and Co-Chairperson of the board. According to a press release statement, the agreement was signed on September 3.
Under the terms of the new agreement, Sun Lei will cancel $2 million of outstanding unsecured loans previously made to JX Luxventure Group. In exchange, the company will issue shares of its common stock to Sun Lei at a price equal to the closing price on the Nasdaq Capital Market on the trading day before the transaction closes. The company maintains a healthy current ratio of 2.35 and a manageable debt-to-equity ratio of 1.04, according to InvestingPro metrics. The issuance of these shares is subject to certain conditions, including the submission of a Listing of Additional Shares to Nasdaq at least 15 calendar days before the shares are issued.
As of the agreement date, Sun Lei holds 654,878 shares of JX Luxventure Group common stock, representing about 5.46% of the company’s outstanding shares, based on a total of 11,991,001 shares. The total outstanding amount of loans made by Sun Lei to the company is approximately $4.49 million.
This is the second recent debt-for-equity transaction between the company and Sun Lei. On July 14, JX Luxventure Group and Sun Lei entered into a similar agreement, resulting in the cancellation of $510,000 in loans in exchange for 500,049 shares at $1.0199 per share, based on the closing price at that time.
JX Luxventure Group stated that the new share issuance will be conducted in reliance on exemptions from registration under Section 3(a)(9) of the Securities Act of 1933 and/or Regulation S, as a transaction by an issuer not involving a public offering.
The information in this article is based on a press release statement and the company’s filing with the Securities and Exchange Commission.
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