Item 1.01. Entry into a Material Definitive Agreement.
On June 10, 2021, Venus Acquisition Corporation, a Cayman Islands exempted
company (the "Purchaser" or "Venus"), VIYI Algorithm Inc., a Cayman Islands
exempted company ("VIYI" or the "Company"), Venus Merger Sub Corp., a Cayman
Islands exempted company and wholly-owned subsidiary of the Purchaser (the
"Merger Sub") and WiMi Hologram Cloud Inc., a Cayman Islands company and the
legal and beneficial owner of a majority of the issued and outstanding voting
securities of the Company ("Majority Shareholder"), entered into a Merger
Agreement (the "Merger Agreement"). A copy of the Merger Agreement without
exhibits or disclosure schedule was filed as Exhibit 2.1 to a Current Report on
Form 8-K filed by Purchaser on June 14, 2021. WiMi Hologram Cloud, Inc. (NASDAQ:
WIMI) holds approximately 73% of the share capital of VIYI.
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Pursuant to the Merger Agreement, upon the terms and subject to the conditions
of the Merger Agreement and in accordance with the Cayman Islands Companies Act
(as revised) (the "Cayman Companies Act"), the parties intend to effect a
business combination transaction whereby the Merger Sub will merge with and into
the Company, with the Company being the surviving entity (the Company is
hereinafter referred to for the periods from and after the Merger Effective Time
as the "Surviving Corporation") and becoming a wholly owned Subsidiary of Venus
(the "Merger") on the terms and subject to the conditions set forth in this
Agreement and simultaneously with the Closing Purchaser will change its name to
"MicroAlgo Inc."
On January 24, 2022, Venus entered into a Backstop Agreement with WiMi, based on
which WiMi shall acquire up to $15,000,000 aggregate amount shares of Venus in
open market or private transaction. However, based on the term of the Backstop
Agreement, the Backstop Agreement terminated automatically on June 30, 2022. No
ordinary shares of Venus were purchased by WiMi under such backstop agreement.
Venus and VIYI intend to identify, if possible, one or more parties to enter
into a backstop agreement similar to the ones previously executed (or similar
arrangements to accomplish the transactions contemplated thereby) to assist in:
(i) acquiring Venus ordinary shares in open market or in private transactions
prior to the closing of the Business Combination at the then prevailing market
price of the shares, or (ii) acquiring Venus ordinary shares concurrently with
the closing of the Business Combination at a price per share of no greater than
the redemption price per share plus an agreed upon premium above such redemption
price; and in each case waiving the redemption rights associated with any
ordinary shares so purchased. As of the date hereof, no replacement backstop
investor has been identified.
Merger Agreement Amendment
On August 3, 2022, Venus, VIYI and WiMi entered into a third amendment to the
Merger Agreement (the "Amendment"). The purposes of the amendment were to:
remove the approval of issuance by Venus of an aggregate of up to 1,485,149
Venus ordinary shares which may be issued to the Backstop Investor pursuant to
the Backstop Agreement.
The foregoing description of the Amendment does not purport to be complete and
is qualified in its entirety by the terms and conditions of the Amendment, a
copy of which is attached as Exhibit 2.1 hereto and is incorporated by reference
herein.
Item 9.01 Financial Statements and Exhibits
(a) Financial statements of businesses or funds acquired.
Not Applicable
(b) Pro forma financial information
Not Applicable
(c) Shell company transactions.
Not Applicable
(d) Exhibits
Item Description
2.01 Amendment No. 3 dated as of August 3, 2022 to Merger Agreement by and
among, Venus Acquisition Corporation, VIYI Algorithm Inc., Venus Merger
Sub Corp., and WiMi Hologram Cloud Inc.
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