BEIJING - TIAN RUIXIANG Holdings Ltd (NASDAQ:TIRX), a Beijing-based insurance brokerage firm, has announced its plan to expand into the Hong Kong market through the acquisition of Peak Consulting Services Limited, a licensed insurance broker in Hong Kong. The deal, structured as a sale and purchase agreement with Yuefu Company Limited, is valued at $1.5M and will be paid through the issuance of 3,472,222 Class A ordinary shares of TIAN RUIXIANG.
The acquisition is part of TIAN RUIXIANG's strategic vision to establish a presence in Hong Kong, which the company views as a significant growth opportunity for its insurance brokerage operations. The transaction is contingent on a satisfactory due diligence review by TRX HongKong Investment Limited, a wholly-owned subsidiary of TIAN RUIXIANG, and is expected to foster a seamless integration of operations between the two entities.
Chairman and CEO of TIAN RUIXIANG Holdings Ltd, Mr. Zhe Wang, expressed enthusiasm for the growth prospects in Hong Kong and the company's commitment to leveraging its expertise to capitalize on these opportunities. The acquisition is seen as a milestone for TIAN RUIXIANG as it aims to enhance its service offerings and value propositions to clients in the Hong Kong insurance market.
TIAN RUIXIANG specializes in distributing a wide array of insurance products, including property and casualty insurance, as well as life and health insurance, primarily within mainland China. The company's move into Hong Kong represents a strategic effort to diversify its market presence and tap into new client segments.
The current share price used to calculate the consideration for the acquisition is based on a discount from the closing price of $0.54 per share on January 31, 2024. This announcement includes forward-looking statements that involve risks and uncertainties. The company has indicated that it does not intend to update these statements in light of subsequent events and advises investors to review potential risk factors that could affect future results.
This expansion news is based on a press release statement from TIAN RUIXIANG Holdings Ltd and does not include any endorsement of the company's claims or future performance.
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