HONG KONG, Dec. 13, 2015 /PRNewswire/ -- Cogobuy Group ("Cogobuy" or the "Company," stock code: 400.HK), the largest e-commerce platform serving the electronics manufacturing industry in China, has announced that the Company has entered into a Purchase Option Agreement ("Agreement") to acquire the entire equity interests of Shenzhen Comtech Small Loan Limited Company ("Comtech Small Loan Company"). Under the terms of the Agreement, Cogobuy has the right to acquire 100% of the equity interests of Comtech Small Loan Company for a total consideration of RMB300,000,000, with the acquisition expected to complete in 36 months. This consideration is principally determined with reference to Comtech Small Loan Company's paid-up registered capital, which is equal to RMB300,000,000. Cogobuy and Comtech Small Loan Company have also signed an exclusive service agreement and an agency agreement.
Comtech Small Loan Company, a domestic company recently established in Shenzhen in accordance with Chinese law, is a small loan license holder, which has not commented its credit business operation. With a money lender's license in Hong Kong, Cogobuy currently only provides supply chain financing with HKD or USD as loan currency. However, upon completion of the proposed equity acquisition, Cogobuy will obtain a small loan license in China and be authorized to operate a supply chain financing business in RMB. The license will enable the Company to provide additional services to current clients, as well as broaden its client base and enter new markets. Completion of the equity acquisition is subject to approval by the government authorities in relation to the Agreement and must obtain shareholders' approval at an extraordinary general meeting. Prior to the completion of equity acquisition, Cogobuy will enter an exclusive business corporation with Comtech Small Loan Company to co-operate its RMB small loan business.
Mr. Jeffrey Kang, CEO of Cogobuy Group, said, "We launched our supply chain financing business in September 2014 to provide financing support to SME customers who found credit in short supply from commercial banks, and to date the market response has been very good. After completion of the Purchase Option Agreement and obtaining a small loan license in China, we will be able to better satisfy the needs of our SME customers. We expect this enhancement to our operations financing business, along with our existing platform, to further strengthen customer loyalty and win new customers. The expansion to RMB dominated supply chain financing will help us realize growth potential with our existing business and also serve as an additional growth driver for us in 2016."
About Cogobuy Group
Cogobuy Group is the largest e-commerce service platform serving the electronics manufacturing industry in China. Through the e-commerce platform, which includes a direct sales platform, an online marketplace, and a dedicated team of technical consultants and professional sales representatives, the Company provides customers with comprehensive online and offline services across pre-sale, sale, and post-sale stages. The Company serves mainly SME electronics manufacturers.
For further information, please refer to the Company's website at http://www.cogobuy.com/
INGDAN.com is a platform dedicated to connecting global intelligent hardware entrepreneurs and China-based supply chain resources. The platform provides information on hardware innovation, supply chain data, and supply chain demand docking for global IoT innovators and entrepreneurs. It is a one-stop hardware innovation business platform with its core being the "supply chain."
For further information, please refer to the Company's website at http://www.ingdan.com/
SOURCE Cogobuy Group