Benzinga | Nov 9, 2021 11:55AM EST

Bon Natural Life Reports Removed Its Variable Interest Entity Structure, Has Become Sole Shareholder Of ITs Operating Entities In China

Bon Natural Life Limited (NASDAQ:BON) ("BON" or the "Company"), one of the leading bio-ingredient solutions providers in the natural, health and personal care industries, today announced it has removed its variable interest entity ("VIE") structure and has become the sole shareholder of its operating entities in China.

Effective November 1, 2021, the Company reorganized its corporate subsidiary structure in China. As a result of the restructuring, the Company no longer operates through a VIE structure and is now the indirect sole shareholder of Xi'an App-Chem. Xi'an App-Chem is now wholly-owned by the Company's two Wholly Foreign-Owned Enterprises ("WOFE") -- Xi'an Cell and Molecule Information and Technology Co., Ltd. ("Xi'an CMIT") and Xi'an Youpincui Biotechnology Co., Ltd. ("Xi'an Youpincui"). Each of the WOFEs are in turn wholly-owned by Tea Essence, the Company's direct wholly-owned subsidiary in Hong Kong.

"We don't expect that the removal of the VIE structure will have any material impact on our operational results or financial performance." commented Richard (Yongwei) Hu, Chairman and CEO of Bon Natural Life Limited, "In the meantime, this reorganization demonstrates our dedication and commitment to corporate governance and will help strengthen the organization in advance of key upcoming milestones. We will continue to identify and implement best practices at both business and compliance levels to better position ourselves to benefit our shareholders."