Zinitix Co., Ltd signed a contract to acquire Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. (KOSDAQ:A303030) from SV Investment Corp. (KOSDAQ:A289080), SV Partners Co. Ltd. and others in a reverse merger transaction on November 19, 2018.

The consideration comprises issuance of 26.8 million shares at a ratio of 1:2.5748108. The surviving company after the merger is Daishin Balance No.5 Special Purpose Acquisition Co., Ltd., and Zinitix Co., Ltd will be the dissolving company. As per amendment report dated March 20, 2019, Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. will now issue 30.5 million shares.

As of April 30, 2019, the merger consideration was revised to 1: 2.6294089 and Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. will issue 30.3 million shares as consideration. The largest shareholder after the completion of the merger for Zinitix Co., Ltd. is Wonwoo Kim and the expected equity ratio is 12.79%. Post completion, Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. will run the business of Zinitix Co., Ltd, and the name will be changed to Zinitix Co., Ltd. The transaction is subject to approval from each participated shareholders of more than 1/3 of total issued shares and 2/3 of voting rights in the general meeting of shareholders of Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. The general meeting of shareholders' will be held on April 11, 2019.

As of March 20, 2019, the general meeting of shareholders will now take place on June 10, 2019. As of April 30, 2019, a meeting of shareholders will now take place on June 13, 2019. On June 13, 2019, the shareholders of Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. approved the transaction.

On June 13, 2019, the shareholders of Daishin Balance No.5 Special Purpose Acquisition Co., Ltd. approved the appointment of Jongman Son, Jungkwon Park and Hoisik Kang as Executive Directors and Youngik Cheon as Nonexecutive Director. The Board of Directors of Daishin Balance No.5 Special Purpose Acquisition resolved the deal on November 19, 2018. The deal is expected to close on May 13, 2019 and the scheduled listing of new shares is on May 28, 2019.

As per the amendment report dated March 20, 2019, the transaction is expected to be completed by July 15, 2019 and scheduled listing of new shares is on July 30, 2019. Nexia-Samduk acted as external rating institution.