Benzinga | Nov 30, 2021 05:06PM EST

Planet Green Holdings Reports Co Entered Into Purchase Agreement With Yongsheng Chen

n November 30, 2021, Planet Green Holdings Corp. (the "Company") and Jiayi Technologies (Xianning) Co., Ltd. (the "Purchaser"), a subsidiary of the Company, entered into a Share Purchase Agreement ("Agreement") with Yongsheng Chen ("Seller"), a shareholder of Jilin Chuangyuan Chemical Co., Ltd. ("Jinlin"), pursuant to which, among other things and subject to the terms and conditions contained therein, the Purchaser agreed to purchase from the Seller the remaining 25% of the outstanding equity interests of Jilin. Pursuant to the terms of the Agreement, the Company agreed to pay to the Seller an aggregate of U.S. $4,750,000 in exchange for the 25% of the issued and outstanding shares of Jinlin. Prior to completion of the acquisition of the Seller's shares, the Company owned 75% equity interest of Jilin through the Purchaser. As a result of the completion of the transaction, the Company owns 100% of Jinline through the Purchaser. The parties completed the transaction on November 30, 2021.



In connection with the closing of the share purchase transaction, the Purchaser entered into a number of amended agreements with Jilin which are customary for variable interest entities (VIEs), copies of which are filed herewith as Exhibits 10.2 through 10.6, respectively. VIEs are contractual arrangements and the structure involves unique risks to investors. The VIE structure is used to replicate foreign investment in China-based companies.