Greenpro Capital Corp. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Greenpro Capital Corp. on June 6, 2018, reporting events occurring on May 31, 2018. The filing discloses the entry into a Material Definitive Agreement regarding a proposed public offering of common stock.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. The document focuses exclusively on the terms of a proposed capital raise.
Material Changes and Transaction Details
On May 31, 2018, the Company entered into a Placement Agency Agreement with Network 1 Financial Securities, Inc. Key terms include:
- Offering Size: Minimum of 500,000 shares and maximum of 2,500,000 shares of common stock.
- Price: $6.00 per share.
- Duration: The offering terminates on the earlier of the closing date or June 30, 2018, unless extended by mutual agreement.
- Compensation to Agent:
- Cash fee: 5.0% of aggregate gross proceeds.
- Non-accountable expense allowance: 1.5% of gross proceeds.
- Out-of-pocket expenses: Capped at $100,000.
- Warrants: Issuance of warrants to purchase 10% of the aggregate number of shares sold, with an exercise price of $7.20 per share, exercisable for five years.
Guidance, Outlook, and Risks
The offering is being made pursuant to an effective registration statement on Form S-1 (No. 333-219625). The filing does not contain specific management commentary on future operational outlook, risks, or contingencies beyond the terms of the placement agreement.
Investor Verification Checklist
- Verify the status of the Form S-1 registration statement (No. 333-219625) to confirm it remains effective.
- Confirm whether the offering was completed before the June 30, 2018 deadline or if an extension was granted.
- Review the actual number of shares sold and total proceeds raised in subsequent filings.
- Assess the dilution impact of the 10% warrant issuance to the placement agent.