Item 1.01 Entry into a Material Definitive Agreement.
The information set forth in Item 1.02 below is hereby incorporated by reference
into this Item 1.01.
Item 1.02 Termination of a Material Definitive Agreement.
As previously disclosed, on January 6, 2021, Fortune Valley Treasures, Inc. (the
"Company"), along with Daxing Huashang (Hong Kong) Investment Co., Ltd, a Hong
Kong company and a wholly-owned subsidiary of the Company ("DILHK"), entered
into an equity interest transfer agreement (the "Equity Transfer Agreement")
with Valley Holdings Limited ("Valley Holdings"), a Hong Kong company, and Angel
International Investment Holdings Limited ("Angel International"), a shareholder
owning 70% of the equity interest in Valley Holdings. Valley Holdings owns
approximately 88% of the equity of Valley Foods Holdings (Guangzhou) Co., Ltd.,
a food wholesale and food additives production and sales company in China. Under
the Equity Transfer Agreement, DILHK agreed to purchase Angel International's
70% equity in Valley Holdings in exchange for shares of common stock of the
Company.
On July 8, 2022, the Company, DILHK, Angel International and Valley Holdings
entered into a termination agreement (the "Termination Agreement") pursuant to
which the parties agreed to terminate the Equity Transfer Agreement. The Equity
Transfer Agreement was terminated effective as of July 8, 2022 and the parties
have no further rights or obligations under the Equity Transfer Agreement. The
parties further agreed to waive their rights to any claims that may arise under
the Equity Transfer Agreement. As of the date of the Termination Agreement, no
equity interest of Valley Holdings had been transferred to DILHK.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
10.1 Termination Agreement dated July 8, 2022 (English translation)
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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