Benzinga | Dec 16, 2020 06:23AM EST

Hexindai Announced Sale of its P2P Business for RMB 5M

Hexindai Inc. (NASDAQ:HX) today announced that Beijing Hexin Yongheng Technology Development Co., Ltd. ("Hexin Yongheng"), a wholly-owned subsidiary of the Company, Kuaishangche Automobile Leasing Co., Ltd. ("Kuaishangche"), a company not directly associated with the Company, Hexin E-Commerce Company Limited ("Hexin E-Commerce"), and individual shareholders of Hexin E-Commerce have entered into an assignment and assumption agreement on December 11, 2020 (the "Agreement"). Pursuant to the Agreement, Hexin Yongheng has agreed to assign and transfer to Kuaishangche the control over Hexin E-Commerce, in exchange for cash consideration of RMB 5 million (the "Disposition"). Upon the closing of the Disposition, Kuaishangche will become the primary beneficiary of and have control of Hexin E-Commerce, and as a result, assume all assets and liabilities of Hexin E-Commerce and subsidiaries owned or controlled by Hexin E-Commerce, excluding any rights, titles, interests or claims that Hexin E-Commerce may have in Wusu Hexin Yongheng Commercial and Trading Co., Ltd. ("Wusu Company"), which shall remain as a consolidated variable interest entity of the Company. The Company conducted its peer-to-peer ("P2P") business through its consolidated variable interest entity, Hexin E-Commerce and had ceased to offer new loans since November 2019. As a result of the Disposition, the Company will cease to conduct its P2P business and focus on developing and investing resources into its social e-commerce platform, Xaobai Maimai.

Mr. Xiaobo An, Founder, Chairman and Chief Executive Officer of Hexindai, commented, "Due to ongoing challenges and regulatory constraints, we have decided to dispose of our P2P business and transform into a social e-commerce platform. Since we launched Xiaobai Maimai in May 2020, this social e-commerce platform has been well received by users and gained strong growth momentum in recent months. Going forward, we will continue to improve our service and product offerings on Xiaobai Maimai, further expand our user base and diversify monetization channels with other e-commerce platforms and online marketplaces to create long-term value for our users and shareholders."

The closing of the Disposition is subject to the satisfaction or waiver of certain closing conditions, including the receipt of a fairness opinion issued by independent appraisal firm Asia-Pacific Consulting and Appraisal Limited ("APA"), confirming that the consideration to be received by Hexin Yongheng in the Disposition is fair, from a financial point of view, to shareholders of Hexindai.

A copy of the Agreement, which sets forth the terms of the Disposition, is available on the SEC's website at www.sec.gov.