Business
E-Home Household Service Holdings Limited Dissolves the VIE Structure
FUZHOU, China, Oct. 19, 2021 /PRNewswire/ -- E-Home Household Service Holdings Limited (Nasdaq: EJH) (the "Company" or "E-Home"), a provider of integrated
About this update from E-home Household Service Holdings Limited
[{"type":"text","content":"FUZHOU, China, Oct. 19, 2021 /PRNewswire/ -- E-Home Household Service Holdings Limited (Nasdaq: EJH) (the \"Company\" or \"E-Home\"), a provider of integrated household services in China, today announced that its indirectly wholly owned Chinese subsidiary, E-Home Household Service Technology Co., Ltd. (\"E-Home WFOE\"), has exercised the options to acquire 100% equity interests of each of Fuzhou Bangchang Technology Co. Ltd. (\"Fuzhou Bangchang\") and Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (\"E-Home Pingtan\"), two variable interest entities (\"VIEs\") of the Company from the shareholders of the VIEs. Mr. Wenshan Xie (\"Mr. Xie\"), the Chairman and Chief Executive Officer of the Company, beneficially owns more than 50% of each of the VIEs. \nOn February 20, 2019, E-Home WFOE entered into an exclusive option agreement with Fuzhou Bangchang and Fuzhou Bangchang's shareholders, pursuant to which Fuzhou Bangchang's shareholders granted E-Home WFOE or its designee(s) an exclusive, irrevocable options to purchase, from time to time, all or a part of equity interests in Fuzhou Bangchang at an exercise price of RMB 10, in the aggregate. On February 22, 2019, E-Home WFOE entered into another exclusive option agreement with E-Home Pingtan and E-Home Pingtan's shareholders, pursuant to which E-Home Pingtan's shareholders granted E-Home WFOE or its designee(s) an exclusive, irrevocable options to purchase, from time to time, all or a part of equity interests in E-Home Pingtan at an exercise price of RMB 10, in the aggregate.\nOn October 18, 2021, E-Home WFOE exercised the purchase options and entered into equity transfer agreements with Fuzhou Bangchang, E-Home Pingtan, and their shareholders, under which the shareholders agreed to transfer to E-Home WFOE all of their equity interests in each of Fuzhou Bangchang and E-Home Pingtan. The parties agreed that the closing of the transactions contemplated by the equity transfer agreements would take place on the date when the parties have completed the applicable PRC government registration(s) to effectuate the transfers of the equity interests.\nMr. Wenshan Xie, Chairman and Chief Executive Officer of the Company, commented, \"We believe the dissolution of VIE structure will improve corporate governance and transparency for E-Home's shareholders. We will continue to mak...