Item 1.01 Entry Into A Material Definitive Agreement.
On 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.
Item 2.01 Completion of Acquisition or Disposition of Assets.
The information set forth in Item 1.01 above relating to the closing of the
share purchase transaction is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
10.1 Share Purchase Agreement, dated as of November 30, 2021, by and among
Planet Green Holdings Corp., Jiayi Technologies (Xianning) Co., Ltd.,
and Yongsheng Chen, a shareholder of Jilin Chuangyuan Chemical Co.,
Ltd.
10.2 Amended Consultation and Service Agreement
10.3 Amended Business Cooperation Agreement
10.4 Amended Equity Pledge Agreement
10.5 Amended Equity Option Agreement
10.6 Amended Voting Rights Proxy and Financial Supporting Agreement
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