Business Context and Reporting Period
This Form 6-K filing covers the month of December 2019 for China Internet Nationwide Financial Services Inc., a foreign private issuer. The filing discloses a strategic transaction entered into on December 24, 2019.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on a proposed asset acquisition.
Material Changes
The Company entered into a non-binding letter of intent with Jiangxi Lihong Construction Engineering Group Co., Ltd. ("JXLH"). Under this agreement, JXLH and/or its affiliates may sell or contribute real estate assets with an estimated residual value of $50,000,000 to the Company. Consideration for these assets will be paid in shares of the Company's common stock.
Outlook, Risks, and Contingencies
- Transaction Status: The deal is non-binding and subject to satisfactory due diligence and the execution of definitive agreements.
- Exit Strategy: The parties intend to create a 6-12 month phased exit plan for the Company's existing assets.
- Contingencies: Completion of the transaction is not guaranteed pending the aforementioned conditions.
Investor Verification Checklist
- Verify the definitive agreement terms once due diligence is complete.
- Confirm the final valuation of the real estate assets contributed by JXLH.
- Review the specific details of the 6-12 month phased exit plan for existing assets.
- Assess the dilution impact of issuing common stock as consideration for the $50,000,000 asset value.