As filed with the Securities and Exchange Commission on December 21,
2022
Registration No. 333-[ ]
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER THE SECURITIES
ACT OF 1933
ATIF HOLDINGS LIMITED
(Exact name of registrant as specified in its charter)
| British Virgin Islands |
|
Not Applicable |
(State or other jurisdiction of
incorporation or organization) |
|
(I.R.S. Employer
Identification Number) |
25391 Commercentre
Dr., Ste 200,
Lake Forest, CA 92630
308-888-8888
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
Jun Liu
Chief Executive Officer
ATIF Holdings Limited
25391 Commercentre
Dr., Ste 200,
Lake Forest, CA 92630
308-888-8888
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
With a Copy to:
Huan Lou, Esq.
David Manno, Esq.
Sichenzia Ross Ference LLP
1185 Avenue of the Americas, 31st
Floor
New York, NY 10036
(212) 930-9700
Approximate date of commencement of proposed
sale to the public: From time to time after the effective date of this registration statement.
If the only securities being registered on this
Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box: ☐
If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered
only in connection with dividend or interest reinvestment plants, check the following box: ☒
If this Form is filed to register additional securities
for an offering pursuant to Rule 462(b) under the Securities Act, please check the following and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed
pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of
the earlier effective registration statement for the same offering. ☐
If this Form is a registration statement pursuant
to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant
to Rule 462(e) under the Securities Act, check the following box. ☐
If this Form is a post-effective amendment to
a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities
pursuant to Rule 413(b) under the Securities Act, check the following box. ☐
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☐ Large accelerated filer |
☒ Non-accelerated filer |
| ☐ Accelerated filer |
☒ Smaller reporting company |
| |
☒ Emerging growth company |
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ☐
The registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section
8(a), may determine.
The information in this
prospectus is not complete and may be changed. We may not sell these securities until the registration statement relating to these securities
that has been filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities
and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Subject to Completion, dated December 21, 2022
PROSPECTUS
$100,000,000
ATIF Holdings Limited
Ordinary Shares
Preferred shares
Warrants
Rights
Units
ATIF Holdings Limited, a British
Virgin Islands corporation (“ATIF BVI”), may from time to time, in one or more offerings at prices and on terms that ATIF
BVI may determine at the time of each offering, sell ordinary shares, preferred shares, warrants to purchase ordinary shares, rights to
purchase ordinary shares, or a combination of these securities, or units composed of any combination of our ordinary shares, preferred
shares, rights and warrants, for an aggregate initial offering price of up to $100,000,000. This prospectus describes the general manner
in which our securities may be offered using this prospectus. Each time ATIF BVI offers and sells securities, ATIF BVI will provide you
with a prospectus supplement that will contain specific information about the terms of that offering. Any prospectus supplement may also
add, update, or change information contained in this prospectus. You should carefully read this prospectus and the applicable prospectus
supplement as well as the documents incorporated or deemed to be incorporated by reference in this prospectus before you purchase any
of the securities offered hereby.
This prospectus may not be
used to offer and sell securities unless accompanied by a prospectus supplement.
ATIF BVI’s ordinary shares, par value US$0.001 per share (“ordinary
shares”) are listed on the Nasdaq Capital Market under the symbol “ATIF.” On December 19, 2022, the closing price of
ATIF BVI’s ordinary shares was $1.84 per share. As of the date of this prospectus, none of the other securities that ATIF BVI may
offer by this prospectus is listed on any national securities exchange or automated quotation system.
As of December 5, 2022, the
aggregate market value of ATIF BVI’s outstanding ordinary shares held by non-affiliates is approximately $6,246,622, based
on 9,627,452 ordinary shares issued and outstanding as of December 5, 2022, of which 4,359,122 shares were held by non-affiliates, and
based on the closing price of our ordinary shares of $1.433 per share on December 5, 2022. ATIF BVI has not sold any securities pursuant
to General Instruction I.B.6 of Form S-3 during the 12 calendar months prior to and including the date of this prospectus. Pursuant to
General Instruction I.B.6 of Form S-3, in no event will we sell securities in a public primary offering with a value exceeding more than
one-third of our public float in any 12-month period so long as our public float remains below $75.0 million.
The securities offered by this
prospectus involve a high degree of risks. ATIF BVI is a holding company incorporated in British Virgin Islands. As a holding company
with no material operations of its own, ATIF BVI conducts a substantial amount of its operations through its subsidiaries in U.S. We conduct
our operations in the U.S. through our 100% ownership interest in ATIF USA, a California corporation and 76.6% limited partnership interest
in ATIF-1, L.P., a Delaware limited partnership. ATIF USA also holds a 100% membership interest in ATIF-1 GP, LLC, a Delaware Limited
Liability Company.
Since our inception in 2015,
no transfers, dividends, or distributions to U.S. investors have been made to date.
Our ordinary shares may be
prohibited from trading on a national exchange or “over-the-counter” markets under the Holding Foreign Companies Accountable
Act (the “HFCAA”) if the Public Company Accounting Oversight Board (“PCAOB”) determines that it is unable to inspect
or fully investigate our auditor and as a result the exchange where our securities are traded may delist our securities. Furthermore,
on June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act (the “AHFCAA”), which,
if signed into law, would amend the HFCAA and require the SEC to prohibit an issuer’s securities from trading on any U.S. stock
exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three consecutive years. Pursuant to
the HFCAA, the PCAOB issued a Determination Report on December 16, 2021, which found that the PCAOB was unable to inspect or investigate
completely certain named registered public accounting firms headquartered in mainland China and Hong Kong. Our independent registered
public accounting firm is headquartered in Denver, Colorado and has been inspected by the PCAOB on a regular basis and as such, it is
not affected by or subject to the PCAOB’s Determination Report.
ATIF BVI is a holding company
incorporated in British Virgin Islands. You will be purchasing the ordinary shares of ATIF BVI, the holding company with U.S. and offshore
subsidiaries and affiliates pursuant to this registration statement. You are not directly investing in any of our Affiliated Entities.
“ATIF USA” means ATIF Inc., a California corporation and a wholly-owned subsidiary of ATIF BVI. “ATIF Investment”
shall hereinafter refer to ATIF Investment Limited, a BVI company and wholly-owned subsidiary of ATIF BVI. “ATIF LP” shall
hereinafter refer to ATIF -1, L.P., a Delaware limited partnership and majority-owned subsidiary of ATIF BVI. “ATIF BD” shall
hereinafter refer to ATIF BD LLC, a California limited liability company and wholly-owned subsidiary of ATIF USA. ATIF Southern US, LLC
(“ATIF Southern”), a California limited liability company is a majority-owned subsidiary of ATIF BVI. ATIF Business Consulting
LLC, a California limited liability company (“ATIF Consulting”) is a wholly-owned subsidiary of ATIF USA. ATIF Business Management
LLC, a California limited liability company (“ATIF Management”), is a wholly-owned subsidiary of ATIF USA. All references
to the “we,” “us,” “our,” “Company,” “Group,” “registrant” or
similar terms used in this registration statement refer to ATIF BVI, ATIF USA, ATIF Investment, ATIF LP, ATIF Southern, ATIF Consulting,
ATIF Management, and ATIF BD, unless the context otherwise indicates. “Affiliated Entities” shall refer to the ATIF USA, ATIF
Southern, ATIF Consulting, ATIF Management, ATIF Investment, ATIF LP, and ATIF BD.
Neither the Securities and
Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
ATIF BVI may offer the securities
directly or through agents or to or through underwriters or dealers. If any agents or underwriters are involved in the sale of the securities,
their names, and any applicable purchase price, fee, commission or discount arrangement between or among them, will be set forth, or will
be calculable from the information set forth, in an accompanying prospectus supplement. ATIF BVI can sell the securities through agents,
underwriters, or dealers only with the delivery of a prospectus supplement describing the method and terms of the offering of such securities.
See “Plan of Distribution.”
This prospectus is dated , 2022
Table of Contents
You should rely only on
the information contained or incorporated by reference in this prospectus or any prospectus supplement. We have not authorized anyone
to provide you with information different from that contained or incorporated by reference into this prospectus. If any person does provide
you with information that differs from what is contained or incorporated by reference in this prospectus, you should not rely on it. No
dealer, salesperson, or other person is authorized to give any information or to represent anything not contained in this prospectus.
You should assume that the information contained in this prospectus or any prospectus supplement is accurate only as of the date on the
front of the document and that any information contained in any document we have incorporated by reference is accurate only as of the
date of the document incorporated by reference, regardless of the time of delivery of this prospectus or any prospectus supplement or
any sale of a security. These documents are not an offer to sell or a solicitation of an offer to buy these securities by anyone in any
jurisdiction in which such offer or solicitation is not authorized, or in which the person is not qualified to do so or to any person
to whom it is unlawful to make such offer or solicitation.
ABOUT THIS PROSPECTUS
This prospectus is part of
a registration statement that ATIF BVI filed with the Securities and Exchange Commission, or the “SEC,” using a “shelf”
registration process. Under this shelf registration process, ATIF BVI may sell any combination of the securities described in this prospectus
in one of more offerings up to a total dollar amount of $100,000,000. This prospectus describes the general manner in which our securities
may be offered by this prospectus. Each time ATIF BVI sells securities, ATIF BVI will provide a prospectus supplement that will contain
specific information about the terms of that offering. The prospectus supplement may also add, update, or change information contained
in this prospectus or in documents incorporated by reference in this prospectus. The prospectus supplement that contains specific information
about the terms of the securities being offered may also include a discussion of certain U.S. federal income tax consequences and any
risk factors or other special considerations applicable to those securities. To the extent that any statement that ATIF BVI make in a
prospectus supplement is inconsistent with statements made in this prospectus or in documents incorporated by reference in this prospectus,
you should rely on the information in the prospectus supplement. You should carefully read both this prospectus and any prospectus supplement
together with the additional information described under “Where You Can Find Additional Information” before buying any securities
in this offering.
Other Pertinent Information
ATIF BVI is a holding company
incorporated in British Virgin Islands. You will be purchasing the ordinary shares of ATIF BVI, the holding company with U.S. and offshore
subsidiaries and affiliates pursuant to this registration statement. You are not directly investing in any of our Affiliated Entities.
Unless otherwise indicated
or the context requires otherwise, references in this prospectus to:
| ● | “ATIF BVI” shall hereinafter refer to ATIF Holdings Limited, a British Virgin Islands corporation. |
| | | |
| ● | “ATIF USA” shall hereinafter refer to ATIF Inc., a California
corporation and a wholly-owned subsidiary of ATIF BVI. |
| | | |
| ● | “ATIF Investment” shall hereinafter refer to ATIF Investment
Limited, a BVI company and a wholly-owned subsidiary of ATIF BVI. |
| | | |
| ● | “ATIF LP” shall hereinafter refer to ATIF -1, L.P., a Delaware
limited partnership and a majority-owned subsidiary of ATIF BVI. |
| | | |
| ● | “ATIF BD” shall hereinafter refer to ATIF BD LLC, a California
limited liability company and a wholly-owned subsidiary of ATIF USA. |
| | | |
| ● | “ATIF Southern” shall hereinafter refer to ATIF Southern US,
LLC, a California LLC and a majority-owned subsidiary of ATIF BVI. |
| | | |
| ● | “ATIF Consulting” shall hereinafter refer to ATIF Business Consulting
LLC, a California LLC and a wholly-owned subsidiary of ATIF USA. |
| | | |
| ● | “ATIF Management” shall hereinafter refer to ATIF Business Management
LLC, a California LLC and wholly-owned subsidiary of ATIF USA. |
| | | |
| ● | “we,” “us,” “Company,” “Group,”
or the “registrant” or similar terms used in this registration statement refer to ATIF BVI, ATIF USA, ATIF Investment, ATIF
LP, ATIF Southern, ATIF Consulting, ATIF Management, and ATIF BD, unless the context otherwise indicates. |
| | | |
| ● | “Affiliated Entities” shall refer to the ATIF USA, ATIF Southern,
ATIF Consulting, ATIF Management, ATIF Investment, ATIF LP, and ATIF BD. |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents
and information incorporated by reference in this prospectus include forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, or the “Securities Act,” and Section 21E of the Securities Exchange Act of 1934, as amended,
or the “Exchange Act.” These statements are based on our management’s beliefs and assumptions and on information currently
available to our management. Such forward-looking statements include those that express plans, anticipation, intent, contingency, goals,
targets, or future development and/or otherwise are not statements of historical fact.
All statements in this prospectus
and the documents and information incorporated by reference in this prospectus that are not historical facts are forward-looking statements.
We may, in some cases, use terms such as “anticipates,” “believes,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans,” “potential,” “predicts,”
“projects,” “should,” “will,” “would,” or similar expressions or the negative of such
items that convey uncertainty of future events or outcomes to identify forward-looking statements.
Forward-looking statements
are made based on management’s beliefs, estimates, and opinions on the date the statements are made and ATIF BVI undertakes no obligation
to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as may be
required by applicable law. Although ATIF BVI believes that the expectations reflected in the forward-looking statements are reasonable,
ATIF BVI cannot guarantee future results, levels of activity, performance, or achievements.
THE COMPANY
Overview
We
are a British Virgin Islands business company. We are a business consulting company providing financial consulting services to
small and medium-sized enterprises (“SMEs”) and prior to August 1, 2022, our Affiliated Entity ATIF USA, managed a private
equity fund with approximately $1.3 million assets under management (“AUM”). Since our inception in 2015, the main focus of
our consulting business has been providing comprehensive going public consulting services designed to help SMEs become public companies
on suitable stock markets and exchanges. Our goal is to become an international financial consulting company with clients and offices
throughout North America and Asia. In order to expand our business with a flexible business concept and reach our goal of high growth
revenue and strong profit growth, on January 4, 2021, we opened an office in California, USA, through our wholly owned subsidiary ATIF
USA. Our clients located within United States are serviced by ATIF USA. ATIF BVI relies on a professional
service team, who is rich in business consulting experiences, extensive social relations, and international integrated services, to make
the IPO process as easy as possible for its clients. We operate with competitive fee schedules and in the cases of clients with attractive
financial performance and/or great growth potential, we would offer the option of paying no fees upfront.
To mitigate the potential
risks arising from the PRC government provision of new guidance to and restrictions on China-based companies raising capital offshore,
we decided to divest our PRC subsidiaries. As of May 31, 2022, we completed the transfer of our equity interest in ATIF Limited, a Hong
Kong corporation (“ATIF HK”) and Huaya Consulting (Shenzhen) Co., Ltd., corporation formed under the laws of the PRC (“Huaya”)
to Mr. Pishan Chi, our former director and CEO, for no consideration.
We have primarily focused
on helping clients going public on the OTC markets and national stock exchanges in the U.S.
Recent Developments
On
January 4, 2021, we announced the relocation of our operating headquarter to California, USA, through our wholly owned subsidiary ATIF
USA. As part of this relocation, we transitioned our services from the variable interest entity (“VIE”), Qianhai Asia Times
(Shenzhen) International Financial Services Co., Ltd. (“Qianhai”), to ATIF USA and Huaya by terminating the VIE agreements
between the Company and Qianhai on February 3, 2021. We did this to simplify the management chain and improve management control, with
the goal of lowering costs. We believe that this streamlined management model and strategic partnership strategy is in line with the current
fast-changing and competitive business environment and will provide us with strong growth capability. The termination of the VIE agreement
with Qianhai did not adversely affect Huaya, our business, financial condition, and results of operations.
On January 14, 2021,
the Company entered into the sales and purchase agreement (the “Sales and Purchase Agreement”) with the majority shareholders
of Leaping Group Co., Ltd. (“LGC”) consisting of Jiang Bo, Jiang Tao and Wang
Di (collectively the “LGC Buyers”) to sell our 51.2% equity interest in LGC. Pursuant to the Sales and Purchase Agreement,
the Company sold 10,217,230 ordinary shares of LGC in exchange for (i) 5,555,548 ordinary shares of the Company owned by the LGC Buyers,
and (ii) a cash payment of US$2,300,000 payable by January 14, 2023 at an interest rate of 10% per annum. As of the date of this prospectus,
the 5,555,548 ordinary shares owned by the LGC Buyers have been returned to the Company and the $2.3 million cash payment has not yet
been received from the LGC Buyers. The Company recognized an estimated loss of approximately $6.1 million from this transaction, which
were reflected in the pro forma financial information as included in the Company’s form 6-K as filed with SEC on February 4, 2021,
and was recognized in the audited financial statements and included in our annual report for the year ended July 3, 2022.
As a result of termination of the VIE agreements and sale of all our
equity interests in LGC, we currently do not have a VIE structure.
On February 16, 2021,
we established ATIF-1, LP (“ATIF LP”) as a private equity fund, with ATIF USA as the investment manager and ATIF-1 GP, LLC
(“ATIF GP”), a Delaware limited liability company, as the general partner of ATIF LP. As of July 31, 2022, we own a 76.6%
interest in ATIF LP as a limited partner. As of July 31, 2022, ATIF LP had approximately $1.3 million assets under management (“AUM”).
ATIF LP’s investment strategy involves directional long and short investments in equity securities, primarily issued by large cap
U.S. companies, and American Depositary Receipts (“ADRs”) related to Chinese companies of various sizes, including private
companies. Due to significant volatility in stock market, the private equity fund lost $1.5 million in fiscal year 2022 as compared to
gain $0.2 million in fiscal year 2021. On August 1, 2022, ATIF USA entered into and closed a sales and purchase agreement (the “ATIF
GP Agreement”) with Asia Time (HK) International Finance Service Limited (the “Buyer”) pursuant to which ATIF USA sold
all of its membership interests in ATIF GP to the Buyer for cash consideration of US$50,000. Upon the closing of the Agreement on August
1, 2022, ATIF GP is no longer our subsidiary and ATIF USA ceased to be the investment manager of ATIF LP.
On August 23, 2021, we
completed a five (5) for one (1) reverse stock split of our issued and outstanding ordinary shares.
On December 22, 2021,
we established ATIF BD which is engaged in consultancy and information technology support services.
On April 25, 2022, we
established ATIF Investment which is engaged in consultancy and information technology support services.
On May 31, 2022, we completed
the transfer of our equity interest in ATIF HK and Huaya to Mr. Pishan Chi, our former director and CEO, for $nil consideration. The transfer
of equity interest was to mitigate the potential risks arising from the PRC government provision of new guidance to and restrictions on
China-based companies raising capital offshore.
On October 3, 2022, we
established ATIF Southern which is engaged in equity investment business in Texas.
On October 6, 2022, we
established ATIF Consulting which is engaged in IPO consulting services in North America.
On October 7, 2022, we
established ATIF Management which plans to provide comprehensive services, such as investors’ relationships and secretarial services
in North America in future.
Corporate Structure
The following diagram illustrates our current corporate structure:
Competitive Strengths
We believe that the following
strengths enable us to stand out in the financial service industry and differentiate us from our competitors:
Experienced and Highly
Qualified Team
We have a highly qualified
professional service team with extensive experience in going public consulting services. Our professional team members have an average
of five years of experience in their respective fields of international finance, capital market, cross-border and domestic listing services,
and marketing. The majority of the members of our team previously worked in the technology or finance industries. We highly value members
of our qualified professional team and are on the constant lookout for new talents to join our team.
Recognition and Reputation
Achieved from Our Previous Success
Since our inception in
2015, we have successfully helped eight clients to be quoted on the U.S. OTC markets and one client listed on the U.S Nasdaq market, respectively.
We believe we are one of the few going public consulting service providers that possess the necessary resources and expertise to provide
comprehensive personalized one-stop going public consulting services to clients.
Long-Term Cooperation
Relationship with Third-Party Professional Providers
We have established long-term
professional relationships with a group of well-known third-party professional providers both domestically and in the U.S., such as investment
banks, certified public accounting firms, law firms, and investor relations agencies, whose services and support are necessary for us
to provide high-quality one-stop going public consulting service to our clients. It took us years of hard work to demonstrate to these
professional organizations that we are a worthy partner capable of providing high-quality professional services that conforms to their
high standards. As a result, our clients are able to gain direct access to and obtain high-quality professional services from our third-party
professional providers.
COVID-19 Impact
The COVID-19 pandemic has resulted
in the implementation of significant governmental measures, including lockdowns, closures, quarantines, and travel bans, intended to control
the spread of the virus. Even though the COVID-19 situation is now normalizing internationally, we are continuing to assess our business
plans and the impact COVID-19 may have on our ability to provide financial consulting services to SMEs and to the SMEs’ businesses,
but there can be no assurance that this analysis will enable us to avoid part or all of any impact from the spread of COVID-19 or its
consequences, including downturns in business sentiment generally or in our sector in particular. In addition, no assurance can be given
that there would not be a future outbreak of COVID-19 which may result in additional quarantine and other measures taken to try to prevent
the spread of COVID-19, which may materially and adversely affect our financial condition and results of operations.
Recent Regulatory Development
We
are subject to a wide variety of complex laws and regulations in the United States and other jurisdictions in which we operate. The laws
and regulations govern many issues related to our business practices, including those regarding consumer protection, worker classification,
wage and hour, sick pay and leaves of absence, anti-discrimination and harassment, whistleblower protections, background checks, privacy,
data security, intellectual property, health and safety, environmental, competition, fees and payments, pricing, product liability and
disclosures, property damage, communications, employee benefits, taxation, unionization and collective bargaining, contracts, arbitration
agreements, class action waivers, terms of service, and accessibility of our website.
These
laws and regulations are constantly evolving and may be interpreted, applied, created, superseded, or amended in a manner that could harm
our business. These changes may occur immediately or develop over time through judicial decisions or as new guidance or interpretations
are provided by regulatory and governing bodies, such as federal, state and local administrative agencies. As we expand our business into
new markets or introduce new features or offerings into existing markets, regulatory bodies or courts may claim that we are subject to
additional requirements, or that we are prohibited from conducting business in certain jurisdictions. This section summarizes the principal
regulations applicable to our business.
Regulation on Intellectual
Property Rights
Regulations on trademarks
The Trademark Law of
the People’s Republic of China was adopted at the 24th meeting of the Standing Committee of the Fifth National People’s Congress
on August 23, 1982. Three amendments were made on February 22, 1993, October 27, 2001, and August 30, 2013, respectively.
The last amendment was implemented on May 1, 2014. The regulations on the implementation of the trademark law of the People’s
Republic of China were promulgated by the State Council of the People’s Republic of China on August 3, 2002, and took effect
on September 15, 2002. It was revised on April 29, 2014 and April 23, 2019. The PRC Trademark Office under the State Administration
of Market Regulation handles trademark registrations and grants a term of 10 years to registered trademarks and another 10 years if requested
upon expiration of the first or any renewed 10-year term. Trademark license agreements must be filed with the PRC Trademark Office for
record. The PRC Trademark Law has adopted a “first-to-file” principle with respect to trademark registration. Where a trademark
to be registered is identical or similar to another trademark which has already been registered or been subject to a preliminary examination
and approval for use on the same kind of or similar goods or services, the application for registration of such trademark may be rejected.
Any person applying for the registration of a trademark may not prejudice the existing right first obtained by others, nor may any person
register in advance a trademark that has already been used by another party and has already gained a “sufficient degree of reputation”
through such party’s use. After receiving an application, the PRC Trademark Office will make a public announcement if the relevant
trademark passes the preliminary examination. During the three months after this public announcement, any person entitled to prior rights
and any interested party may file an objection against the trademark. The PRC Trademark Office’s decisions on rejection, objection,
or cancellation of an application may be appealed to the PRC Trademark Review and Adjudication Board, whose decision may be further appealed
through judicial proceedings. If no objection is filed within three months after the public announcement or if the objection has been
overruled, the PRC Trademark Office will approve the registration and issue a registration certificate, at which point the trademark is
deemed to be registered and will be effective for a renewable 10-year period, unless otherwise revoked. For licensed use of a registered
trademark, the licensor shall file record of the licensing with the PRC Trademark Office, and the licensing shall be published by the
PRC Trademark Office. Failure of the licensing of a registered trademark shall not be contested against a good faith third party. For
a detailed description of our trademark registrations, please refer to “—Intellectual Property.”
Regulations on domain
names
In accordance with the
Measures for the Administration of Internet Domain Names, which was promulgated by the Ministry of Industry and Information Technology
(the “MIIT”) on August 24, 2017 and came into effect on November 1, 2017, the Implementing Rules of China Internet Network
Information Center on Domain Name Registration, which was promulgated by China Internet Network Information Center (the “CNNIC”)
on May 28, 2012 and came into effect on May 29, 2012, and the Measures of the China Internet Network Information Center on Domain Name
Dispute Resolution, which was promulgated by CNNIC on September 1, 2014 and came into effect on the same date, domain name registrations
are handled through domain name service agencies established under relevant regulations, and an applicant becomes a domain name holder
upon successful registration, and domain name disputes shall be submitted to an organization authorized by CNNIC for resolution. Besides,
the MIIT is in charge of the administration of PRC internet domain names. The domain name registration follows a first-to-file principle.
Applicants for registration of domain names shall provide true, accurate, and complete information of their identities to domain name
registration service institutions. In accordance with the Notice from the Ministry of Industry and Information Technology on Regulating
the Use of Domain Names in Internet Information Services, which was promulgated by the MIIT on November 27, 2017 and came into effect
on January 1, 2018, Internet access service providers shall verify the identity of each Internet information service provider, and shall
not provide services to any Internet information service provider which fails to provide real identity information. The applicant will
become the holder of such domain names upon completion of the registration procedure. As of July 31, 2020, we had completed registration
of five domain names, “ipoex.com,” “chinacnnm.com,” “atifchina.com,” “atifus.com,”
and “dpoex.com,” in the PRC and became the legal holder of such domain names.
PRC Laws and Regulations
Relating to Foreign Exchange
General administration
of foreign exchange
The principal regulation
governing foreign currency exchange in the PRC is the Administrative Regulations of the PRC on Foreign Exchange (the “Foreign Exchange
Regulations”), which were promulgated on January 29, 1996, became effective on April 1, 1996, and were amended on January
14, 1997, and August 1, 2008. Under these rules, RMB is generally freely convertible for payments of current account items, such as trade-
and service-related foreign exchange transactions and dividend payments, but not freely convertible for capital account items, such as
capital transfer, direct investment, investment in securities, derivative products, or loans unless prior approval and prior registration
by competent authorities for the administration of foreign exchange is obtained and made. Under the Foreign Exchange Regulations, foreign-invested
enterprises in the PRC may purchase foreign exchange under the current accounts without the approval of SAFE to pay dividends by providing
certain evidentiary documents, including board resolutions, tax certificates, or for trade- and services-related foreign exchange transactions,
by providing commercial documents evidencing such transactions.
Circular No. 75,
Circular No. 37, and Circular No. 13
Circular 37 was released
by SAFE on July 4, 2014, and abolished Circular 75 which had been in effect since November 1, 2005. Pursuant to Circular 37,
a PRC resident should apply to SAFE for foreign exchange registration of overseas investments prior to the establishment or control of
an offshore special purpose vehicle, or SPV, using his or her legitimate domestic or offshore assets or interests. SPVs are offshore enterprises
directly established or indirectly controlled by domestic residents for the purpose of investment and financing by utilizing domestic
or offshore assets or interests they legally hold. Following any significant change in a registered offshore SPV, such as capital increase,
reduction, equity transfer or swap, consolidation or division involving domestic resident individuals, the domestic individuals shall
amend the registration with SAFE. Where an SPV intends to repatriate funds raised after completion of offshore financing to the PRC, it
shall comply with relevant PRC regulations on foreign investment and foreign debt management. A foreign-invested enterprise established
through return investment shall complete relevant foreign exchange registration formalities in accordance with the prevailing foreign
exchange administration regulations on foreign direct investment and truthfully disclose information on the actual controller of its shareholders.
If any shareholder who
is a PRC resident (as determined by Circular 37) holds any interest in an offshore SPV and fails to fulfil the required foreign exchange
registration with the local SAFE branches, the PRC subsidiaries of that offshore SPV may be prohibited from distributing their profits
and dividends to their offshore parent company or from carrying out other subsequent cross-border foreign exchange activities. The offshore
SPV may also be restricted in its ability to contribute additional capital to its PRC subsidiaries. Where a domestic resident fails to
complete relevant foreign exchange registration as required, fails to truthfully disclose information on the actual controller of the
enterprise involved in the return investment or otherwise makes false statements, the foreign exchange control authority may order them
to take remedial actions, issue a warning, and impose a fine of less than RMB300,000 (approximately $43,000) on an institution or less
than RMB50,000 (approximately $7,300) on an individual.
Circular 13 was issued
by SAFE on February 13, 2015, and became effective on June 1, 2015. Pursuant to Circular 13, a domestic resident who makes a
capital contribution to an SPV using his or her legitimate domestic or offshore assets or interests is no longer required to apply to
SAFE for foreign exchange registration of his or her overseas investments. Instead, he or she shall register with a bank in the place
where the assets or interests of the domestic enterprise in which he or she has interests are located if the domestic resident individually
seeks to make a capital contribution to the SPV using his or her legitimate domestic assets or interests; or he or she shall register
with a local bank at his or her permanent residence if the domestic resident individually seeks to make a capital contribution to the
SPV using his or her legitimate offshore assets or interests. The qualified bank will directly examine the applications and accept registrations
under the supervision of SAFE.
As of the date of this
prospectus, our shareholders have not completed registrations in accordance with Circular 37, they are currently working on their registrations
in the local Administration of Exchange Control. The failure of our shareholders to comply with the registration procedures may subject
each of our shareholders to warnings and fines. If the registration formalities cannot be processed retrospectively, then the repatriation
of the financing funds, profits, or any other interests of our shareholders obtained through special purpose vehicles, for use in China,
would be prohibited. As a result, any cross-border capital flows between our PRC subsidiary and its offshore parent company, including
dividend distributions and capital contributions, would be illegal
Circular 19 and Circular
16
Circular 19 was promulgated
by SAFE on March 30, 2015, and became effective on June 1, 2015. According to Circular 19, foreign exchange capital of foreign-invested
enterprises shall be granted the benefits of Discretional Foreign Exchange Settlement (“Discretional Foreign Exchange Settlement”).
With Discretional Foreign Exchange Settlement, foreign exchange capital in the capital account of a foreign-invested enterprise for which
the rights and interests of monetary contribution has been confirmed by the local foreign exchange bureau, or for which book-entry registration
of monetary contribution has been completed by the bank, can be settled at the bank based on the actual operational needs of the foreign-invested
enterprise. The allowed Discretional Foreign Exchange Settlement percentage of the foreign exchange capital of a foreign-invested enterprise
has been temporarily set to be 100%. The RMB converted from the foreign exchange capital will be kept in a designated account and if a
foreign-invested enterprise needs to make any further payment from such account, it will still need to provide supporting documents and
to complete the review process with its bank.
Furthermore, Circular
19 stipulates that foreign-invested enterprises shall make bona fide use of their capital for their own needs within their business scopes.
The capital of a foreign-invested enterprise and the RMB if obtained from foreign exchange settlement shall not be used for the following
purposes
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directly or indirectly used for expenses beyond its business scope or prohibited by relevant laws or regulations; |
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directly or indirectly used for investment in securities unless otherwise provided by relevant laws or regulations; |
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directly or indirectly used for entrusted loan in RMB (unless within its permitted scope of business), repayment of inter-company loans (including advances by a third party) or repayment of bank loans in RMB that have been sub-lent to a third party; and |
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directly or indirectly used for expenses related to the purchase of real estate that is not for self-use (except for foreign-invested real estate enterprises). |
Circular 16 was issued
by SAFE on June 9, 2016. Pursuant to Circular 16, enterprises registered in the PRC may also convert their foreign debts from foreign
currency to RMB on a self-discretionary basis. Circular 16 provides an integrated standard for conversion of foreign exchange capital
items (including but not limited to foreign currency capital and foreign debts) on a self-discretionary basis applicable to all enterprises
registered in the PRC. Circular 16 reiterates the principle that an enterprise’s RMB converted from foreign currency-denominated
capital may not be directly or indirectly used for purposes beyond its business scope or purposes prohibited by PRC laws or regulations,
and such converted RMB shall not be provided as loans to non-affiliated entities.
Circulars 16 and 19 address
foreign direct investments into the PRC, and stipulate the procedures applicable to foreign exchange settlement. As we do not plan to
transfer any proceeds raised to our subsidiaries in the PRC, such proceeds would not be subject to Circular 19 or Circular 16. However,
if and when circumstances require funds to be transferred to our subsidiaries in the PRC from our offshore entities, then any such transfer
would be subject to Circulars 16 and 19.
Laws and Regulations Relating to Employment and Social Welfare in the
U.S. and PRC
U.S. Labor and Employment
Laws
Various
federal and state labor laws govern our relationship with our employees and affect operating costs. These laws include
minimum wage requirements, overtime pay, unemployment tax rates, workers’ compensation rates, citizenship requirements and sales
taxes. Additional government-imposed increases in minimum wages, overtime pay, paid leaves of absence and mandated health benefits such
as those to be imposed by recently enacted legislation in California, increased tax reporting and tax payment requirements for employees
who receive gratuities, or a reduction in the number of states that allow tips to be credited toward minimum wage requirements could harm
our operating results.
The
Federal Americans with Disabilities Act prohibits discrimination on the basis of disability in public accommodations and employment. Although
our office is designed to be accessible to the disabled, we could be required to make modifications to our office to provide service to,
or make reasonable accommodations for, disabled persons.
Labor Law of the PRC
Pursuant to the Labor
Law of the PRC, which was promulgated by the Standing Committee of the NPC on July 5, 1994, with an effective date of January 1,
1995, and was last amended on December 29, 2018, and the Labor Contract Law of the PRC, which was promulgated on June 29, 2007, became
effective on January 1, 2008, and was last amended on December 28, 2012, with the amendments coming into effect on July 1,
2013, enterprises and institutions shall ensure the safety and hygiene of a workplace, strictly comply with applicable rules and
standards on workplace safety and hygiene in China, and educate employees on such rules and standards. Furthermore, employers and
employees shall enter into written employment contracts to establish their employment relationships. Employers are required to inform
their employees about their job responsibilities, working conditions, occupational hazards, remuneration, and other matters with which
the employees may be concerned. Employers shall pay remuneration to employees on time and in full accordance with the commitments set
forth in their employment contracts and with the relevant PRC laws and regulations. Until May 31, 2022, before we transfer all our equity
interest in Huaya, Huaya has entered into written employment contracts with all its employees and performed its obligations required under
the relevant PRC laws and regulations.
PRC Social Insurance and Housing Fund
As required under the
Regulation of Insurance for Labor Injury implemented on January 1, 2004, and amended in 2010, the Provisional Measures for Maternity Insurance
of Employees of Corporations implemented on January 1, 1995, the Decisions on the Establishment of a Unified Program for Pension Insurance
of the State Council issued on July 16, 1997, the Decisions on the Establishment of the Medical Insurance Program for Urban Workers of
the State Council promulgated on December 14, 1998, the Unemployment Insurance Measures promulgated on January 22, 1999, the Interim Regulations
Concerning the Collection and Payment of Social Insurance Premiums implemented on January 22, 1999, and the Social Insurance Law of the
PRC, which was promulgated by the Standing Committee of the NPC on October 28, 2010, became effective on July 1, 2011, and last
amended on December 29, 2018, employers in the PRC shall provide their employees with welfare schemes covering basic pension insurance,
basic medical insurance, unemployment insurance, maternity insurance, and occupational injury insurance. Huaya has deposited the social
insurance fees in full for all the employees in compliance with the relevant regulations since June 2019 to May 31,2022.
In accordance with the
Regulations on Management of Housing Provident Fund, which were promulgated by the State Council on April 3, 1999, and last amended
on March 24, 2019, employers must register at the designated administrative centers and open bank accounts for depositing employees’
housing funds. Employer and employee are also required to pay and deposit housing funds, with an amount no less than 5% of the monthly
average salary of the employee in the preceding year in full and on time.
U.S. Data Protection
and Privacy Laws
California
has several laws protecting the literary works read by California residents. The California Reader Privacy Act protects information about
the books California residents read from electronic services. Such information cannot be disclosed except pursuant to an individual’s
affirmative consent, a warrant or court order with limited exceptions, such as imminent danger of serious injury. California Education
Code Section 99122 requires for-profit postsecondary educational institutions to post a social media privacy policy on their website.
The
Digital Millennium Copyright Act (DMCA) provides relief for claims of circumvention of copyright protected technologies and includes a
safe harbor intended to reduce the liability of online service providers for hosting, listing, or linking to third-party content that
infringes copyrights of others.
The
Communications Decency Act provides that online service providers will not be considered the publisher or speaker of content provided
by others, such as individuals who post content on an online service provider’s website.
The
California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020, provides consumers the right to know what personal
data companies collect, how it is used, and the right to access, delete, and opt out of the sale of their personal information to third
parties. It also expands the definition of personal information and gives consumers increased privacy rights and protections for that
information. The CCPA also includes special requirements for California consumers under the age of 16.
The
California Privacy Rights Act (CPRA), Virginia Consumer Data Protection Act (CDPA) and Colorado Privacy Act (CPA) all will come into effect
on January 1, 2023. These laws provide consumers with the right to know what personal data companies collect, how it is used, and the
right to access, delete, and opt out of the sale of their personal information to third parties. The CPRA also includes special requirements
for California consumers under the age of 16.
The Holding Foreign Companies Accountable
Act
On May 20, 2020, the U.S. Senate
passed the Holding Foreign Companies Accountable Act (“HFCAA”) requiring a foreign company to certify it is not owned or controlled
by a foreign government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB
inspection. On December 18, 2020, the Holding Foreign Companies Accountable Act or HFCAA was signed into law. On September 22, 2021, the
PCAOB adopted a final rule implementing the HFCAA, which became law in December 2020 and prohibits foreign companies from listing their
securities on U.S. exchanges if the company has been unavailable for PCAOB inspection or investigation for three consecutive years. As
a result of the HFCAA, trading in ATIF BVI’s securities may be prohibited if the PCAOB determines that it cannot inspect or fully
investigate ATIF BVI’s auditor. Furthermore, in June 2021, the Senate passed the AHFCAA, which, if signed into law, would reduce
the time period for the delisting of foreign companies under the HFCAA to two consecutive years, instead of three years.
Our independent registered
public accounting firm has been inspected by the PCAOB on a regular basis and as such, it is not subject to the PCAOB Determination Report.
The recent developments would
add uncertainties to our offering and we cannot assure you whether Nasdaq would apply additional and more stringent criteria to us after
considering the effectiveness of our auditor’s audit procedures and quality control procedures, adequacy of personnel and training,
or sufficiency of resources, geographic reach, or experience as it relates to our audit.
RISK FACTORS
Investing in our securities involves a high degree of risk. Before making an investment decision, you should consider carefully the risks,
uncertainties and other factors described in our most recent Annual Report on Form 10-K, as supplemented and updated by subsequent quarterly
reports on Form 10-Q and current reports on Form 8-K that we have filed or will file with the SEC, which are incorporated by reference
into this prospectus. Additionally you should also consider the risks set forth below.
We depend heavily on a limited number
of clients.
We
have derived, and believe that we will continue to derive, a significant portion of our revenue from a limited number of clients for which
we perform large projects. In addition, revenue from a large client may constitute a significant portion of our total revenue in any particular
quarter. The loss of any of our large clients for any reason, including as a result of the acquisition of that client by another entity,
our failure to meet that client’s expectations, the client’s decision to reduce spending on projects, or failure to collect
amounts owed to us from our client could have a material adverse effect on our business, financial condition and results of operations.
We rely on information
management systems and any damage, interruption or compromise of our information management systems or data could disrupt and harm our
business.
We
rely upon information technology systems and networks, some of which are managed by third parties, to process, transmit, and store electronic
information in connection with the operation of our business. Additionally, we collect and store data that is sensitive to our company.
Operating these information technology systems and networks and processing and maintaining this data, in a secure manner, are critical
to our business operations and strategy. Our information management systems and the data contained therein may be vulnerable to damage,
including interruption due to power loss, system and network failures, operator negligence and similar causes.
The
techniques used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving and often are not
recognized until launched against a target, or even some time after. We may be unable to anticipate these techniques, implement adequate
preventative measures or remediate any intrusion on a timely or effective basis even if our security measures are appropriate, reasonable,
and/or comply with applicable legal requirements. Certain efforts may be state-sponsored and supported by significant financial and technological
resources, making them even more sophisticated and difficult to detect. Insider or employee cyber and security threats are also a significant
concern for all companies, including ours. Given the unpredictability of the timing, nature and scope of such disruptions, we could potentially
be subject to production downtimes, operational delays, other detrimental impacts on our operations or ability to provide products and
services to our customers, the compromising, misappropriation, destruction or corruption of data, security breaches, other manipulation
or improper use of our systems or networks, financial losses from remedial actions, loss of business or potential liability, and/or damage
to our reputation, any of which could have a material adverse effect on our competitive position, results of operations, cash flows or
financial condition. Any significant compromise of our information management systems or data could impede or interrupt our business operations
and may result in negative consequences including loss of revenue, fines, penalties, litigation, reputational damage, inability to accurately
and/or timely complete required filings with government entities including the SEC and the Internal Revenue Service, unavailability or
disclosure of confidential information (including personal information) and negative impact on our stock price.
We may not be successful
in the implementation of our business strategy or our business strategy may not be successful, either of which will impede our development
and growth.
We do not know whether we will
be able to continue successfully implementing our business strategy or whether our business strategy will ultimately be successful. In
assessing our ability to meet these challenges, a potential investor should take into account our lack of operating history, our management’s
relative inexperience, the competitive conditions existing in our industry and general economic conditions. Our growth is largely dependent
on our ability to successfully implement our business strategy. Our revenues may be adversely affected if we fail to implement our business
strategy or if we divert resources to a business strategy that ultimately proves unsuccessful.
Our service offerings may not be accepted.
We constantly seek to modify
our service offerings to the marketplace. As is typically the case evolving service offerings, anticipation of demand and market acceptance
are subject to a high level of uncertainty. The success of our service offerings primarily depends on the interest of our customers. In
general, achieving market acceptance for our services will require substantial marketing efforts and the expenditure of significant funds,
which we may not have available, to create awareness and demand among customers.
These risks could materially
affect our business, results of operation or financial condition and affect the value of our securities. Additional risks and uncertainties
that are not yet identified may also materially harm our business, operating results and financial condition and could result in a complete
loss of your investment. You could lose all or part of your investment. For more information, see “Where You Can Find More Information.”
USE OF PROCEEDS
Unless otherwise indicated
in a prospectus supplement, we intend to use the net proceeds from the sale of the securities under this prospectus for general corporate
purposes, which may include, among other things, repayment of debt, repurchases of ordinary shares, capital expenditures, the financing
of possible acquisitions or business expansions, increasing our working capital and the financing of ongoing operating expenses and overhead.
DESCRIPTION OF SECURITIES TO BE REGISTERED
We may offer, from time to
time, our ordinary shares, preferred shares, warrants to purchase ordinary shares, rights to purchase ordinary shares or a combination
of these securities, or units consisting of a combination of any or all of these securities, in amounts we will determine from time to
time, under this prospectus at prices and on terms to be determined by market conditions at the time of offering. This prospectus provides
you with a general description of the securities we may offer. See “Description of Shares ,” “Description of Warrants,”
“Description of Rights,” and “Description of Units,” below. Each time we offer a type or series of securities,
we will provide a prospectus supplement that will describe the specific amounts, prices and other important terms of the securities, including,
to the extent applicable:
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Designation or classification; |
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Aggregate principal amount or aggregate offering price; |
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Rates and times of payment of interest or dividends, if any; |
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Redemption, conversion or sinking fund terms, if any; |
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Voting or other rights, if any; |
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Conversion prices, if any; and |
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Important federal income tax considerations. |
The prospectus supplement and
any related free writing prospectus also may supplement, or, as applicable, add, update or change information contained in this prospectus
or in documents we have incorporated by reference. However, no prospectus supplement or free writing prospectus will offer a security
that is not registered and described in this prospectus at the time of the effectiveness of the registration statement of which this prospectus
is a part.
The terms of any particular
offering, the offering price and the net proceeds to us will be contained in the prospectus supplement, information incorporated by reference
or free writing prospectus relating to such offering.
DESCRIPTION OF SHARES
We are a British Virgin Islands
company with limited liability and our affairs are governed by our amended and restated memorandum and articles of association, as amended
and restated from time to time, and the BVI Business Companies Act of 2004, as amended, which is referred to as the BVI Act below, and
the common law of the British Virgin Islands.
We are authorized to issue
up to 100,000,000,000 ordinary shares and Class A preferred shares, with a par value of $0.001 each. As of the date of this prospectus,
there are 9,627,452 ordinary shares issued and outstanding. There are no Class A preferred shares outstanding. The following are summaries
of material provisions of our current amended and restated memorandum and articles of association which are currently effective and the
BVI Act insofar as they relate to the material terms of our ordinary shares. You should read the forms of our current memorandum and articles
of association, which was filed as an exhibit to our current report on Form 6-K filed with the commission on September 8, 2021. For information
on how to obtain copies of our current memorandum and articles of association, see “Where You Can Find Additional Information.”
Ordinary Shares
General
All of our issued ordinary
shares are fully paid and non-assessable. There are no limitations imposed by our memorandum and articles of association on the rights
of non-resident or foreign shareholders to hold or exercise voting rights on our ordinary shares. In addition, there are no provisions
in our memorandum and articles of association governing the ownership threshold above which shareholder ownership must be disclosed.
Under the BVI Act, the ordinary
shares are deemed to be issued when the name of the shareholder is entered in our register of members. If (a) information that
is required to be entered in the register of members is omitted from the register or is inaccurately entered in the register, or (b) there
is unreasonable delay in entering information in the register, a shareholder of the company, or any person who is aggrieved by the omission,
inaccuracy or delay, may apply to the British Virgin Islands Courts for an order that the register be rectified, and the court may either
refuse the application or order the rectification of the register, and may direct the company to pay all costs of the application and
any damages the applicant may have sustained.
Distributions
Shareholders holding ordinary
shares in the Company are entitled to receive a pro rata share of such dividends as may be declared by our board of directors subject
to the BVI Act and the memorandum and articles of association.
Voting rights
Any action required or permitted
to be taken by the shareholders must be effected at a duly called meeting of the shareholders entitled to vote on such action or may be
effected by a resolution of members in writing, each in accordance with the memorandum and articles of association. At each meeting of
shareholders, each shareholder who is present in person or by proxy (or, in the case of a shareholder being a corporation, by its duly
authorized representative) will have one vote for each share that such shareholder holds.
Election of directors
BVI law permits cumulative
voting for the election of directors only if expressly authorized in the memorandum and articles of association. There is nothing under
BVI law which specifically prohibits or restricts the creation of cumulative voting rights for the election of our directors. Our memorandum
and articles of association do not provide for cumulative voting for elections of directors.
Meetings
Under our memorandum and articles
of association, a copy of the notice of any meeting of shareholders shall be given in writing not less than seven (7) days before the
date of the proposed meeting to those persons whose names appear as shareholders in the register of members on the date of the notice
and are entitled to vote at the meeting. Our board of directors shall call a meeting of shareholders upon the written request of shareholders
holding at least 30% of our outstanding voting shares. In addition, our board of directors may call a meeting of shareholders on its own
motion. A meeting of shareholders may be called on short notice if at least 90% of the shares entitled to vote on the matters to be considered
at the meeting have agreed to short notice of the meeting, or if all members holding shares entitled to vote on all or any matters to
be considered at the meeting have waived notice and presence at the meeting shall be deemed to constitute waiver for this purpose.
At any meeting of shareholders,
a quorum will be present if there are shareholders present in person or by proxy representing not less than one-third of the issued shares
entitled to vote on the resolutions to be considered at the meeting. Such quorum may be represented by only a single shareholder or proxy.
If no quorum is present within two hours of the start time of the meeting, the meeting shall be dissolved if it was requested by shareholders.
In any other case, the meeting shall be adjourned to the next business day, and if shareholders representing not less than one-third of
the votes of the common shares or each class of shares entitled to vote on the matters to be considered at the meeting are present within
one (1) hour of the start time of the adjourned meeting, a quorum will be present. If not, the meeting will be dissolved. No business
may be transacted at any meeting of shareholders unless a quorum is present at the commencement of business. If present, the chair of
our board of directors shall be the chair presiding at any meeting of the shareholders. If the chair of our board is not present then
the members present shall choose a shareholder to act to chair the meeting of the shareholders. If the shareholders are unable to choose
a chairman for any reason, then the person representing the greatest number of voting shares present in person or by proxy shall preside
as chairman, failing which the oldest individual member or member representative shall take the chair.
A corporation that is a shareholder
shall be deemed for the purpose of our memorandum and articles of association to be present in person if represented by its duly authorized
representative. This duly authorized representative shall be entitled to exercise the same powers on behalf of the corporation which he
represents as that corporation could exercise if it were our individual shareholder.
Protection of minority shareholders
British Virgin Islands law
permits a minority shareholder to commence a derivative action in our name, or an unfair prejudice claim, or seek a restraining or compliance
order, as appropriate, to challenge, for example (1) an act which is ultra vires or illegal, (2) an act which is likely to be oppressive,
unfairly discriminatory or unfairly prejudicial to a shareholder, (3) an act which constitutes an infringement of individual rights of
shareholders, such as the right to vote, (4) conduct of the Company or a director which contravenes the BVI Act or our memorandum and
articles of association or (5) an irregularity in the passing of a resolution which requires a majority of the shareholders.
Pre-emptive rights
Our memorandum and articles
of association dis-apply the pre-emptive rights provisions of the BVI Act and do not provide for any other pre-emptive rights. Accordingly,
there are no pre-emptive rights applicable to the issue by us of new shares.
Transfer of shares
Subject to the restrictions
in our memorandum and articles of association, and applicable securities laws, any of our shareholders may transfer all or any of his
or her shares by an instrument of transfer in the usual or common form, or in any other form which our directors may approve, or, in the
case of listed shares, in any manner permitted by and in accordance with the rules of the relevant exchange.
Liquidation
As permitted by the BVI Act
and our memorandum and articles of association, we may be voluntarily liquidated under Part XII of the BVI Act by resolution of directors
or resolution of shareholders if our assets exceed our liabilities and we are able to pay our debts as they fall due. We also may be wound
up in circumstances where we are insolvent in accordance with the terms of the BVI Insolvency Act, 2003 (as amended).
If we are wound up and the
assets available for distribution among our shareholders are more than sufficient to repay all amounts paid to us on account of the issue
of shares immediately prior to the winding up, the excess shall be distributable pari passu among the shareholders.
Calls on ordinary shares and forfeiture
of ordinary shares
Our board of directors may,
on the terms established at the time of the issuance of such ordinary shares or as otherwise agreed, make calls upon shareholders for
any amounts unpaid on their ordinary shares in a notice served to such shareholders at least fourteen (14) days prior to the specified
time of payment. The ordinary shares that have been called upon and remain unpaid are subject to forfeiture.
Redemption of shares
Subject to the provisions of
the BVI Act, we may issue ordinary shares on terms that are subject to redemption, at our option or at the option of the holders, on such
terms and in such manner as may be determined by our memorandum and articles of association and subject to any applicable requirements
imposed from time to time by, the BVI Act, the SEC, the NASDAQ Capital Market, or by any recognized stock exchange on which our securities
may be listed.
Modifications of class rights
If at any time, the Company
is authorized to issue more than one (1) class of ordinary shares, all or any of the rights attached to any class of ordinary shares may
be amended only with the consent in writing of or by a resolution passed at a meeting of not less than fifty percent (50%) of the shares
of the class to be affected.
Changes in the number of ordinary shares
we are authorized to issue and those in issue
We may from time to time by
resolution of our board of directors, subject to our memorandum and articles of association:
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amend our memorandum and articles of association to increase or decrease the maximum number of ordinary shares we are authorized to issue; |
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divide our authorized and issued ordinary shares into a larger number of shares; |
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combine our authorized and issued ordinary shares into a smaller number of shares; and |
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create new classes of shares with preferences to be determined by resolution of the board of directors to amend the memorandum and articles of association to create new classes of shares with such preferences at the time of authorization. |
Inspection of books and records
Under the BVI Act, members
of the general public, on payment of a nominal fee, can obtain copies of the public records of a company available at the office of the
Registrar of Corporate Affairs which will include the company’s certificate of incorporation, its memorandum and articles of association
(with any amendments) and records of license fees paid to date and will also disclose any articles of dissolution, articles of merger
and a register of charges if the company has elected to file such a register.
A member of the Company is
also entitled, upon giving written notice to us, to inspect (i) our memorandum and articles of association, (ii) the register of members,
(iii) the register of directors, and (iv) minutes of meetings and resolutions of members and of those classes of members of which that
member is a member, and to make copies and take extracts from the documents and records referred to in (i) to (iv) above. However, our
directors may, if they are satisfied that it would be contrary to the company’s interests to allow a member to inspect any document,
or part of a document specified in (ii) to (iv) above, refuse to permit the member to inspect the document or limit the inspection of
the document, including limiting the making of copies or the taking of extracts or records. See “Where You Can Find More Information.”
Where a company fails or refuses to permit a member to inspect a document or permits a member to inspect a document subject to limitations,
that member may apply to the BVI court for an order that he should be permitted to inspect the document or to inspect the document without
limitation.
Rights of non-resident or foreign shareholders
There are no limitations imposed
by our memorandum and articles of association on the rights of non-resident or foreign shareholders to hold or exercise voting rights
on our shares. In addition, there are no provisions in our memorandum and articles of association governing the ownership threshold above
which shareholder ownership must be disclosed.
Issuance of additional shares
Our memorandum and articles
of association authorizes our board of directors to issue additional shares from authorized but unissued shares, to the extent available,
from time to time as our board of directors shall determine.
Preferred Shares
Our memorandum and articles
of association authorizes the creation and issuance without shareholder approval preferred shares up to the maximum number of authorized
but unissued shares, divided into a single class, Class A preferred shares, with such designation, rights and preferences as may be determined
by a resolution of our board of directors to amend the memorandum and articles of association to create such designations, rights and
preferences. Under BVI law, all shares of a single class must be issued with the same rights and obligations. No preferred shares are
currently issued or outstanding. Accordingly, our board of directors is empowered, without shareholder approval, to issue preferred shares
with dividend, liquidation, redemption, voting or other rights, which could adversely affect the voting power or other rights of the holders
of ordinary shares. The preferred shares could be utilized as a method of discouraging, delaying or preventing a change in control of
us. Although we do not currently intend to issue any preferred shares, we may do so in the future.
The rights of preferred shareholders,
once the preferred shares are in issue, may only be amended by a resolution to amend our memorandum and articles of association provided
such amendment is also approved by a separate resolution of a majority of the votes of preferred shareholders who being so entitled attend
and vote at the class meeting of the relevant preferred class. If our preferred shareholders want us to hold a meeting of preferred shareholders
(or of a class of preferred shareholders), they may requisition the directors to hold one upon the written request of preferred shareholders
entitled to exercise at least thirty percent (30%) of the voting rights in respect of the matter (or class) for which the meeting is requested.
Under British Virgin Islands law, we may not increase the required percentage to call a meeting above thirty percent (30%).
Differences in Corporate Law
The BVI Act and the laws of
the British Virgin Islands affecting British Virgin Islands companies like us and our shareholders differ from laws applicable to U.S.
corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the laws of
the British Virgin Islands applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.
Mergers and similar arrangements
Under the laws of the British
Virgin Islands, two or more companies may merge or consolidate in accordance with Section 170 et seq. of the BVI Act. A merger
means the merging of two or more constituent companies into one of the constituent companies (the “surviving company”) and
a consolidation means the uniting of two or more constituent companies into a new company (the “consolidated company”). The
procedure for a merger or consolidation between the company and another company (which need not be a BVI company, and which may be the
company’s parent or subsidiary, but need not be) is set out in the BVI Act. In order to merge or consolidate, the directors of each
constituent company must approve a written plan of merger or consolidation, which with the exception of a merger between a parent company
and its subsidiary, must also be approved by a resolution of a majority of the shareholders voting at a quorate meeting of shareholders
or by written resolution of the shareholders of the BVI company or BVI companies which are to merge. While a director may vote on the
plan of merger or consolidation, or any other matter, even if he has a financial interest in the plan, the interested director must disclose
the interest to all other directors of the company promptly upon becoming aware of the fact that he is interested in a transaction entered
into or to be entered into by the company. A transaction entered into by our company in respect of which a director is interested (including
a merger or consolidation) is voidable by us unless the director’s interest was (a) disclosed to the board prior to the transaction
or (b) the transaction is (i) between the director and the company and (ii) the transaction is in the ordinary course of the company’s
business and on usual terms and conditions. Notwithstanding the above, a transaction entered into by the company is not voidable if the
material facts of the interest are known to the shareholders and they approve or ratify it or the company received fair value for the
transaction. In any event, all shareholders must be given a copy of the plan of merger or consolidation irrespective of whether they are
entitled to vote at the meeting to approve the plan of merger or consolidation. A foreign company which is able under the laws of its
foreign jurisdiction to participate in the merger or consolidation is required by the BVI Act to comply with the laws of that foreign
jurisdiction in relation to the merger or consolidation. The shareholders of the constituent companies are not required to receive shares
of the surviving or consolidated company but may receive debt obligations or other securities of the surviving or consolidated company,
other assets, or a combination thereof. Further, some or all of the shares of a class or series may be converted into a kind of asset
while the other shares of the same class or series may receive a different kind of asset. As such, not all the shares of a class or series
must receive the same kind of consideration. After the plan of merger or consolidation has been approved by the directors and authorized,
if required, by a resolution of the shareholders, articles of merger or consolidation are executed by each company and filed with the
Registrar of Corporate Affairs in the British Virgin Islands. The merger or consolidation is effective on the date that the articles of
merger or consolidation are registered with the Registrar or on such subsequent date, not exceeding thirty days, as is stated in the articles
of merger or consolidation.
As soon as a merger or consolidation
becomes effective: (a) the surviving company or consolidated company (so far as is consistent with its memorandum and articles of association,
as amended or established by the articles of merger or consolidation) has all rights, privileges, immunities, powers, objects and purposes
of each of the constituent companies; (b) in the case of a merger, the memorandum and articles of association of any surviving company
are automatically amended to the extent, if any, that changes to its memorandum and articles of association are contained in the articles
of merger or, in the case of a consolidation, the memorandum and articles of association filed with the articles of consolidation are
the memorandum and articles of the consolidated company; (c) assets of every description, including choses-in-action and the business
of each of the constituent companies, immediately vest in the surviving company or consolidated company; (d) the surviving company or
consolidated company is liable for all claims, debts, liabilities and obligations of each of the constituent companies; (e) no conviction,
judgment, ruling, order, claim, debt, liability or obligation due or to become due, and no cause existing, against a constituent company
or against any member, director, officer or agent thereof, is released or impaired by the merger or consolidation; and (f) no proceedings,
whether civil or criminal, pending at the time of a merger or consolidation by or against a constituent company, or against any member,
director, officer or agent thereof, are abated or discontinued by the merger or consolidation; but: (i) the proceedings may be enforced,
prosecuted, settled or compromised by or against the surviving company or consolidated company or against the member, director, officer
or agent thereof; as the case may be; or (ii) the surviving company or consolidated company may be substituted in the proceedings for
a constituent company. The Registrar of Corporate Affairs shall strike off the register of companies each constituent company that is
not the surviving company in the case of a merger and all constituent companies in the case of a consolidation. If the directors determine
it to be in the best interests of the company, it is also possible for a merger or consolidation to be approved as a Court approved plan
of arrangement or scheme of arrangement in accordance with the BVI Act.
A shareholder may dissent from
(a) a merger if the company is a constituent company, unless the company is the surviving company and the member continues to hold the
same or similar shares; (b) a consolidation if the company is a constituent company; (c) any sale, transfer, lease, exchange or other
disposition of more than fifty percent (50%) in value of the assets or business of the company if not made in the usual or regular course
of the business carried on by the company but not including: (i) a disposition pursuant to an order of the court having jurisdiction in
the matter, (ii) a disposition for money on terms requiring all or substantially all net proceeds to be distributed to the members in
accordance with their respective interest within one year after the date of disposition, or (iii) a transfer pursuant to the power of
the directors to transfer assets for the protection thereof; (d) a compulsory redemption of ten percent (10%), or fewer of the issued
shares of the company required by the holders of ninety percent (90%), or more of the shares of the company pursuant to the terms of the
BVI Act; and (e) a plan of arrangement, if permitted by the British Virgin Islands Court (each, an Action). A shareholder properly exercising
his dissent rights is entitled to a cash payment equal to the fair value of his shares.
A shareholder dissenting from
an Action must object in writing to the Action before the vote by the shareholders on the merger or consolidation, unless notice of the
meeting was not given to the shareholder. If the merger or consolidation is approved by the shareholders, the company must give notice
of this fact to each shareholder within twenty (20) days who gave written objection. Such objection shall include a statement that the
member proposes to demand payment for his or her shares if the Action is taken. These shareholders then have twenty (20) days to give
to the company their written election in the form specified by the BVI Act to dissent from the Action, provided that in the case of a
merger, the twenty (20) days starts when the plan of merger is delivered to the shareholder. Upon giving notice of his election to dissent,
a shareholder ceases to have any shareholder rights except the right to be paid the fair value of his shares. As such, the merger or consolidation
may proceed in the ordinary course notwithstanding his dissent. Within seven (7) days of the later of the delivery of the notice of election
to dissent and the effective date of the merger or consolidation, the company shall make a written offer to each dissenting shareholder
to purchase his shares at a specified price per share that the company determines to be the fair value of the shares. The company and
the shareholder then have thirty (30) days to agree upon the price. If the company and a shareholder fail to agree on the price within
the thirty (30) days, then the company and the shareholder shall, within twenty (20) days immediately following the expiration of the
30-day period, each designate an appraiser and these two appraisers shall designate a third appraiser. These three appraisers shall fix
the fair value of the shares as of the close of business on the day prior to the shareholders’ approval of the transaction without
taking into account any change in value as a result of the transaction.
Shareholders’ suits
There are both statutory and
common law remedies available to our shareholders as a matter of British Virgin Islands law. These are summarized below.
Prejudiced members
A shareholder who considers
that the affairs of the company have been, are being, or are likely to be, conducted in a manner that is, or any act or acts of the company
have been, or are, likely to be oppressive, unfairly discriminatory or unfairly prejudicial to him in that capacity, can apply to the
court under Section 184I of the BVI Act, inter alia, for an order that his shares be acquired, that he be provided compensation, that
the Court regulate the future conduct of the company, or that any decision of the company which contravenes the BVI Act or our memorandum
and articles of association be set aside.
Derivative actions
Section 184C of the BVI Act
provides that a shareholder of a company may, with the leave of the Court, bring an action in the name of the company in certain circumstances
to redress any wrong done to it. Such actions are known as derivative actions. The BVI Court may only grant permission to bring a derivative
action where the following circumstances apply:
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the company does not intend to bring, diligently continue or defend or discontinue proceedings; and |
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it is in the interests of the company that the conduct of the proceedings not be left to the directors or to the determination of the shareholders as a whole. |
When considering whether to
grant leave, the British Virgin Islands Court is also required to have regard to the following matters:
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whether the shareholder is acting in good faith; |
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whether a derivative action is in the company’s best interests, taking into account the directors’ views on commercial matters; |
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whether the action is likely to proceed; |
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the costs of the proceedings; and |
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whether an alternative remedy is available. |
Restraining or compliance order
If a BVI company or a director
of a BVI company engages in, proposes to engage in or has engaged in, conduct that contravenes the BVI Act or the memorandum or articles
of the company, the Court may, on the application of a shareholder of the company pursuant to Section 184B of the BVI Act, make an order
directing the company or director to comply with, or restraining the company or director from engaging in conduct that contravenes, the
BVI Act or the company's memorandum or articles.
Just and equitable winding up
In addition to the statutory
remedies outlined above, shareholders can also petition the BVI Court for the winding up of a company under the BVI Insolvency Act, 2003
(as amended), for the appointment of a liquidator to liquidate the company and the court may appoint a liquidator for the company if it
is of the opinion that it is just and equitable for the court to so order. Save in exceptional circumstances, this remedy is generally
only available where the company has been operated as a quasi-partnership and trust and confidence between the partners has broken down.
Indemnification of directors and executive
officers and limitation of liability
Our memorandum and articles
of association provide that, subject to certain limitations, we indemnify against all expenses, including legal fees, and against all
judgments, fines and amounts paid in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings
for any person who:
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is or was a party or is threatened to be made a party to any threatened, pending or completed proceedings, whether civil, criminal, administrative or investigative, by reason of the fact that the person is or was our director; or |
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is or was, at our request, serving as a director or officer of, or in any other capacity is or was acting for, another body corporate or a partnership, joint venture, trust or other enterprise |
These indemnities only apply
if the person acted honestly and in good faith with a view to our best interests and, in the case of criminal proceedings, the person
had no reasonable cause to believe that his conduct was unlawful. The decision of the directors as to whether the person acted honestly
and in good faith and with a view to the best interests of the company and as to whether the person had no reasonable cause to believe
that his conduct was unlawful and is, in the absence of fraud, sufficient for the purposes of the memorandum and articles of association,
unless a question of law is involved. The termination of any proceedings by any judgment, order, settlement, conviction or the entering
of a nolle prosequi does not, by itself, create a presumption that the person did not act honestly and in good faith and with a view to
the best interests of the company or that the person had reasonable cause to believe that his conduct was unlawful.
This standard of conduct is
generally the same as permitted under the Delaware General Corporation Law for a Delaware corporation. Insofar as indemnification for
liabilities arising under the Securities Act may be permitted to our directors, officers or persons controlling us under the foregoing
provisions, we have been advised that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
Act and is therefore unenforceable.
Anti-takeover provisions in our Memorandum
and Articles of Association
Some provisions of our articles
of association may discourage, delay or prevent a change in control of our company or management that shareholders may consider favorable.
Under the BVI Act there are no provisions which specifically prevent the issuance of preferred shares or any such other ‘poison
pill’ measures. The memorandum and articles of association of the company also do not contain any express prohibitions on the issuance
of any preferred shares. Therefore, the directors without the approval of the holders of ordinary shares may issue preferred shares that
have characteristics that may be deemed to be anti-takeover. Additionally, such a designation of shares may be used in connection with
plans that are poison pill plans. However, under British Virgin Islands law, our directors, in the exercise of their powers granted to
them under our memorandum and articles of association and performance of their duties, are required to act honestly and in good faith
in what the director believes to be in the best interests of our company.
Directors’ fiduciary duties
Under Delaware corporate law,
a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty
of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent
person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all
material information reasonably available regarding a significant transaction.
The duty of loyalty requires
that a director act in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position
for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation
and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the
shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the
honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence
of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, a director must
prove the procedural fairness of the transaction and that the transaction was of fair value to the corporation.
Under British Virgin Islands
law, our directors owe fiduciary duties to the company both at common law and under statute including, among others, a statutory duty
to act honestly, in good faith, for a proper purpose and with a view to what the directors believe to be in the best interests of the
company. Our directors are also required, when exercising powers or performing duties as a director, to exercise the care, diligence and
skill that a reasonable director would exercise in comparable circumstances, taking into account without limitation, the nature of the
company, the nature of the decision and the position of the director and the nature of the responsibilities undertaken. In the exercise
of their powers, our directors must ensure neither they nor the company acts in a manner which contravenes the BVI Act or our memorandum
and articles of association. The directors owe their duties to the company itself as distinct body rather than to the shareholders of
the company (either collectively or individually) so, where there has been a breach of fiduciary duty by a director, it would typically
be for the company to raise proceedings against the director for the breach. Only in special circumstances would the directors of a company
become subject to a fiduciary duty to the shareholders of the company such that a shareholder would be able to raise proceedings against
the director.
Pursuant to the BVI Act and
our memorandum and articles of association, a director of a company who has an interest in a transaction and who has declared such interest
to the other directors, may:
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(a) |
vote on a matter relating to the transaction; |
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(b) |
attend a meeting of directors at which a matter relating to the transaction arises and be included among the directors present at the meeting for the purposes of a quorum; and |
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(c) |
sign a document on behalf of the Company, or do any other thing in his capacity as a director, that relates to the transaction. |
Shareholder action by written consent
Under the Delaware General
Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation.
British Virgin Islands law provides that, subject to the memorandum and articles of association of a company, an action that may be taken
by members of the company at a meeting may also be taken by a resolution of members consented to in writing.
Shareholder proposals
Under the Delaware General
Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with
the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized
to do so in the governing documents, but shareholders may be precluded from calling special meetings. British Virgin Islands law and memorandum
and articles of association allow our shareholders holding thirty percent (30%) or more of the votes of the outstanding voting shares
to requisition a shareholders’ meeting. There is no requirement under BVI law to hold shareholders’ annual general meetings,
but our memorandum and articles of association do permit the directors to call such a meeting. The location of any shareholders’
meeting can be determined by the board of directors and can be held anywhere in the world.
Cumulative voting
Under the Delaware General
Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation’s certificate of incorporation
specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors
since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases
the shareholder’s voting power with respect to electing such director. As permitted under British Virgin Islands law, our memorandum
and articles of association do not provide for cumulative voting. As a result, our shareholders are not afforded any less protections
or rights on this issue than shareholders of a Delaware corporation.
Removal of directors
Under the Delaware General
Corporation Law, a director of a corporation with a classified board may be removed only for cause with the approval of a majority of
the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under our memorandum and articles
of association, directors can be removed from office, with or without cause, by a resolution of shareholders. Directors can also be removed
by a resolution of directors passed at a meeting of directors called for the purpose of removing the director or for purposes including
the removal of the director.
Transactions with interested shareholders
The Delaware General Corporation
Law contains a business combination statute applicable to Delaware public corporations whereby, unless the corporation has specifically
elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain
business combinations with an “interested shareholder” for three (3) years following the date that such person becomes an
interested shareholder. An interested shareholder generally is a person or group who or which owns or owned fifteen percent (15%) or more
of the target’s outstanding voting shares within the past three (3) years. This has the effect of limiting the ability of a potential
acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if,
among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either
the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential
acquirer of a Delaware public corporation to negotiate the terms of any acquisition transaction with the target’s board of directors.
British Virgin Islands law has no comparable statute and our memorandum and articles of association does not expressly provide for the
same protection afforded by the Delaware business combination statute.
Dissolution; Winding Up
Under the Delaware General
Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding
one hundred percent (100%) of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors
may it be approved by a simple majority of the corporation’s outstanding shares. Delaware law allows a Delaware corporation to include
in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board. Under the
BVI Act and our memorandum and articles of association, we may appoint a voluntary liquidator by a resolution of the shareholders or a
resolution of the directors, provided that the directors have made a declaration of solvency that the company is able to discharge its
debts as they fall due and that the value of the company’s assets exceed its liabilities.
Variation of rights of shares
Under the Delaware General
Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such
class, unless the certificate of incorporation provides otherwise. Under our memorandum and articles of association, if at any time our
shares are divided into different classes of shares, the rights attached to any class may only be varied, whether or not our company is
in liquidation, with the consent in writing of or by a resolution passed at a meeting by a majority of the votes cast by those entitled
to vote at a meeting of the holders of the issued shares in that class. For these purposes the creation, designation or issue of preferred
shares with rights and privileges ranking in priority to an existing class of shares is deemed not to be a variation of the rights of
such existing class and may in accordance with our memorandum and articles of association be effected by resolution of directors without
shareholder approval.
Amendment of governing documents
Under the Delaware General
Corporation Law, a corporation’s governing documents may be amended with the approval of a majority of the outstanding shares entitled
to vote, unless the certificate of incorporation provides otherwise. As permitted by British Virgin Islands law, our memorandum and articles
of association may be amended by a resolution of shareholders and, subject to certain exceptions, by a resolution of directors. An amendment
is effective from the date it is registered at the Registry of Corporate Affairs in the British Virgin Islands.
Anti-Money Laundering Laws
In order to comply with legislation
or regulations aimed at the prevention of money laundering we are required to adopt and maintain anti-money laundering procedures, and
may require subscribers to provide evidence to verify their identity. Where permitted, and subject to certain conditions, we also may
delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable
person.
We reserve the right to request
such information as is necessary to verify the identity of a subscriber. In the event of delay or failure on the part of the subscriber
in producing any information required for verification purposes, we may refuse to accept the application, in which case any funds received
will be returned without interest to the account from which they were originally debited.
If any person resident in the
British Virgin Islands knows or suspects that another person is engaged in money laundering or terrorist financing and the information
for that knowledge or suspicion came to their attention in the course of their business the person will be required to report his belief
or suspicion to the Financial Investigation Agency of the British Virgin Islands, pursuant to the Proceeds of Criminal Conduct Act 1997
(as amended). Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed
by any enactment or otherwise.
DESCRIPTION OF WARRANTS
General
We may issue warrants to purchase ordinary shares, preferred shares,
rights or units representing a combination thereof. We may issue the warrants independently or together with any underlying securities,
and the warrants may be attached or separate from the underlying securities. We may also issue a series of warrants under a separate warrant
agreement to be entered into between us and a warrant agent. The warrant agent will act solely as our agent in connection with the warrants
of such series and will not assume any obligation or relationship of agency for or with holders or beneficial owners of warrants.
The following description is
a summary of selected provisions relating to the warrants that we may issue. The summary is not complete. When warrants are offered in
the future, a prospectus supplement, information incorporated by reference or a free writing prospectus, as applicable, will explain the
particular terms of those securities and the extent to which these general provisions may apply. The specific terms of the warrants as
described in a prospectus supplement, information incorporated by reference, or free writing prospectus will supplement and, if applicable,
may modify or replace the general terms described in this section.
This summary and any description
of warrants in the applicable prospectus supplement, information incorporated by reference or free writing prospectus is subject to and
is qualified in its entirety by reference to all the provisions of any specific warrant document or agreement, if applicable. We will
file each of these documents, as applicable, with the SEC and incorporate them by reference as an exhibit to the registration statement
of which this prospectus is a part on or before the time we issue a series of warrants. See “Where You Can Find Additional Information”
and “Incorporation of Information by Reference” above for information on how to obtain a copy of a warrant document when it
is filed.
When we refer to a series of
warrants, we mean all warrants issued as part of the same series under the applicable warrant agreement.
Terms
The applicable prospectus supplement,
information incorporated by reference or free writing prospectus, may describe the terms of any warrants that we may offer, including,
but not limited to, the following:
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The title of the warrants; |
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The total number of warrants; |
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The price or prices at which the warrants will be issued; |
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The price or prices at which the warrants may be exercised; |
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The currency or currencies that investors may use to pay for the warrants; |
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The date on which the right to exercise the warrants will commence and the date on which the right will expire; |
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Whether the warrants will be issued in registered form or bearer form; |
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Information with respect to book-entry procedures, if any; |
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If applicable, the minimum or maximum amount of warrants that may be exercised at any one time; |
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If applicable, the designation and terms of the underlying securities with which the warrants are issued and the number of warrants issued with each underlying security; |
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If applicable, the date on and after which the warrants and the related underlying securities will be separately transferable; |
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If applicable, a discussion of material United States federal income tax considerations; |
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If applicable, the terms of redemption of the warrants; |
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The identity of the warrant agent, if any; |
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The procedures and conditions relating to the exercise of the warrants; and |
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Any other terms of the warrants, including terms, procedures, and limitations relating to the exchange and exercise of the warrants. |
Warrant Agreement
We may issue the warrants in
one or more series under one or more warrant agreements, each to be entered into between us and a bank, trust company, or other financial
institution as warrant agent. We may add, replace, or terminate warrant agents from time to time. We may also choose to act as our own
warrant agent or may choose one of our subsidiaries to do so.
The warrant agent under a warrant
agreement will act solely as our agent in connection with the warrants issued under that agreement. Any holder of warrants may, without
the consent of any other person, enforce by appropriate legal action, on its own behalf, its right to exercise those warrants in accordance
with their terms.
Form, Exchange and Transfer
We may issue the warrants in
registered form or bearer form. Warrants issued in registered form, i.e., book-entry form, will be represented by a global security registered
in the name of a depository, which will be the holder of all the warrants represented by the global security. Those investors who own
beneficial interests in a global warrant will do so through participants in the depository’s system, and the rights of these indirect
owners will be governed solely by the applicable procedures of the depository and its participants. In addition, we may issue warrants
in non-global form, i.e., bearer form. If any warrants are issued in non-global form, warrant certificates may be exchanged for new warrant
certificates of different denominations, and holders may exchange, transfer, or exercise their warrants at the warrant agent’s office
or any other office indicated in the applicable prospectus supplement, information incorporated by reference or free writing prospectus.
Prior to the exercise of their
warrants, holders of warrants exercisable for ordinary shares will not have any rights of holders of ordinary shares and will not be entitled
to dividend payments, if any, or voting rights of the ordinary shares.
Exercise of Warrants
A warrant will entitle the
holder to purchase for cash an amount of securities at an exercise price that will be stated in, or that will be determinable as described
in, the applicable prospectus supplement, information incorporated by reference or free writing prospectus. Warrants may be exercised
at any time up to the close of business on the expiration date set forth in the applicable offering material. After the close of business
on the expiration date, unexercised warrants will become void. Warrants may be redeemed as set forth in the applicable offering material.
Warrants may be exercised as
set forth in the applicable offering material. Upon receipt of payment and the warrant certificate properly completed and duly executed
at the corporate trust office of the warrant agent or any other office indicated in the applicable offering material, we will forward,
as soon as practicable, the securities purchasable upon such exercise. If less than all of the warrants represented by such warrant certificate
are exercised, a new warrant certificate will be issued for the remaining warrants.
DESCRIPTION
OF RIGHTS
We may issue rights to purchase
our securities. The rights may or may not be transferable by the persons purchasing or receiving the rights. In connection with any rights
offering, we may enter into a standby underwriting or other arrangement with one or more underwriters or other persons pursuant to which
such underwriters or other persons would purchase any offered securities remaining unsubscribed for after such rights offering. Each series
of rights will be issued under a separate rights agent agreement to be entered into between us and one or more banks, trust companies
or other financial institutions, as rights agent, that we will name in the applicable prospectus supplement. The rights agent will act
solely as our agent in connection with the rights and will not assume any obligation or relationship of agency or trust for or with any
holders of rights certificates or beneficial owners of rights.
The prospectus supplement relating
to any rights that we offer will include specific terms relating to the offering, including, among other matters:
| • | | the date of determining the security holders entitled to the rights distribution; |
| • | | the aggregate number of rights issued and the aggregate amount of securities purchasable
upon exercise of the rights; |
| • | | the conditions to completion of the rights offering; |
| • | | the date on which the right to exercise the rights will commence and the date on which the
rights will expire; and |
| • | | any applicable federal income tax considerations. |
Each right would entitle the
holder of the rights to purchase for cash the principal amount of securities at the exercise price set forth in the applicable prospectus
supplement. Rights may be exercised at any time up to the close of business on the expiration date for the rights provided in the applicable
prospectus supplement. After the close of business on the expiration date, all unexercised rights will become void.
If less than all of the rights
issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than our security holders,
to or through agents, underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements, as
described in the applicable prospectus supplement.
DESCRIPTION OF UNITS
We may issue units composed of
any combination of our ordinary shares, preferred shares, rights and warrants. We will issue each unit so that the holder of the unit
is also the holder of each security included in the unit. As a result, the holder of a unit will have the rights and obligations of a
holder of each included security. The unit agreement under which a unit is issued may provide that the securities included in the unit
may not be held or transferred separately, at any time or at any time before a specified date.
The following description is
a summary of selected provisions relating to units that we may offer. The summary is not complete. When units are offered in the future,
a prospectus supplement, information incorporated by reference or a free writing prospectus, as applicable, will explain the particular
terms of those securities and the extent to which these general provisions may apply. The specific terms of the units as described in
a prospectus supplement, information incorporated by reference, or free writing prospectus will supplement and, if applicable, may modify
or replace the general terms described in this section.
This summary and any description
of units in the applicable prospectus supplement, information incorporated by reference or free writing prospectus is subject to and is
qualified in its entirety by reference to the unit agreement, collateral arrangements and depositary arrangements, if applicable. We will
file each of these documents, as applicable, with the SEC and incorporate them by reference as an exhibit to the registration statement
of which this prospectus is a part on or before the time we issue a series of units. See “Where You Can Find Additional Information”
and “Incorporation of Information by Reference” above for information on how to obtain a copy of a document when it is filed.
The applicable prospectus supplement,
information incorporated by reference or free writing prospectus may describe:
| |
● |
The designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately; |
| |
● |
Any provisions for the issuance, payment, settlement, transfer, or exchange of the units or of the securities composing the units; |
| |
● |
Whether the units will be issued in fully registered or global form; and |
| |
● |
Any other terms of the units. |
The applicable provisions described
in this section, as well as those described under “Description of Capital Share,” and “Description of Warrants”
above, will apply to each unit and to each security included in each unit, respectively.
Transfer Agent and Registrar
The transfer agent and registrar
for our ordinary shares is Transhare Corporation, Bayside Center 1, 17755 US Highway 19 N, Suite 140, Clearwater FL 33764, and its telephone
number is (303) 662-1112.
NASDAQ Capital Market Listing
Our ordinary shares is listed
on the NASDAQ Capital Market under the symbol “ATIF.”
PLAN OF DISTRIBUTION
We may sell the securities
offered through this prospectus (i) to or through underwriters or dealers, (ii) directly to purchasers, including our affiliates, (iii)
through agents, or (iv) through a combination of any of these methods. The securities may be distributed at a fixed price or prices, which
may be changed, market prices prevailing at the time of sale, prices related to the prevailing market prices, or negotiated prices. The
prospectus supplement will include the following information:
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● |
the terms of the offering; |
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|
| |
● |
the names of any underwriters or agents; |
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● |
the name or names of any managing underwriter or underwriters; |
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● |
the purchase price of the securities; |
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● |
any over-allotment options under which underwriters may purchase additional securities from us; |
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● |
the net proceeds from the sale of the securities; |
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● |
any delayed delivery arrangements; |
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● |
any underwriting discounts, commissions and other items constituting underwriters’ compensation; |
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● |
any offering price; |
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● |
any discounts or concessions allowed or reallowed or paid to dealers; |
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● |
any commissions paid to agents; and |
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● |
any securities exchange or market on which the securities may be listed. |
Sale Through Underwriters or Dealers
Only underwriters named in
the prospectus supplement are underwriters of the securities offered by the prospectus supplement. If underwriters are used in the sale,
the underwriters will acquire the securities for their own account, including through underwriting, purchase, security lending, or repurchase
agreements with us. The underwriters may resell the securities from time to time in one or more transactions, including negotiated transactions.
Underwriters may sell the securities in order to facilitate transactions in any of our other securities (described in this prospectus
or otherwise), including other public or private transactions and short sales. Underwriters may offer securities to the public either
through underwriting syndicates represented by one or more managing underwriters or directly by one or more firms acting as underwriters.
Unless otherwise indicated in the prospectus supplement, the obligations of the underwriters to purchase the securities will be subject
to certain conditions, and the underwriters will be obligated to purchase all the offered securities if they purchase any of them. The
underwriters may change from time to time any offering price and any discounts or concessions allowed or reallowed or paid to dealers.
If dealers are used in the
sale of securities offered through this prospectus, we will sell the securities to them as principals. They may then resell those securities
to the public at varying prices determined by the dealers at the time of resale. The prospectus supplement will include the names of the
dealers and the terms of the transaction.
We will provide in the applicable
prospectus supplement any compensation we will pay to underwriters, dealers, or agents in connection with the offering of the securities,
and any discounts, concessions, or commissions allowed by underwriters to participating dealers.
Direct Sales and Sales Through Agents
We may sell the securities
offered through this prospectus directly. In this case, no underwriters or agents would be involved. Such securities may also be sold
through agents designated from time to time. The prospectus supplement will name any agent involved in the offer or sale of the offered
securities and will describe any commissions payable to the agent. Unless otherwise indicated in the prospectus supplement, any agent
will agree to use its reasonable best efforts to solicit purchases for the period of its appointment.
We may sell the securities
directly to institutional investors or others who may be deemed to be underwriters within the meaning of the Securities Act with respect
to any sale of those securities. The terms of any such sales will be described in the prospectus supplement.
Delayed Delivery Contracts
If the prospectus supplement
indicates, we may authorize agents, underwriters, or dealers to solicit offers from certain types of institutions to purchase securities
at the offering price under delayed delivery contracts. These contracts would provide for payment and delivery on a specified date in
the future. The contracts would be subject only to those conditions described in the prospectus supplement. The applicable prospectus
supplement will describe the commission payable for solicitation of those contracts.
Market Making, Stabilization, and Other Transactions
Unless the applicable prospectus
supplement states otherwise, other than our ordinary shares, all securities we offer under this prospectus will be a new issue and will
have no established trading market. We may elect to list offered securities on an exchange or in the over-the-counter market. Any underwriters
that we use in the sale of offered securities may make a market in such securities, but may discontinue such market making at any time
without notice. Therefore, we cannot assure you that the securities will have a liquid trading market.
Any underwriter may also engage
in stabilizing transactions, syndicate covering transactions, and penalty bids in accordance with Rule 104 under the Exchange Act. Stabilizing
transactions involve bids to purchase the underlying security in the open market for the purpose of pegging, fixing, or maintaining the
price of the securities. Syndicate covering transactions involve purchases of the securities in the open market after the distribution
has been completed in order to cover syndicate short positions.
Penalty bids permit the underwriters
to reclaim a selling concession from a syndicate member when the securities originally sold by the syndicate member are purchased in a
syndicate covering transaction to cover syndicate short positions. Stabilizing transactions, syndicate covering transactions, and penalty
bids may cause the price of the securities to be higher than it would be in the absence of the transactions. The underwriters may, if
they commence these transactions, discontinue them at any time.
General Information
Agents, underwriters, and dealers
may be entitled, under agreements entered into with us, to indemnification by us against certain liabilities, including liabilities under
the Securities Act. Our agents, underwriters, and dealers, or their affiliates, may be customers of, engage in transactions with, or perform
services for us, in the ordinary course of business.
LEGAL MATTERS
We are being represented by
Sichenzia Ross Ference LLP with respect to legal matters of United States federal securities law and New York State law. Unless otherwise
indicated in the applicable prospectus supplement, the validity of the securities offered by this prospectus, and any supplement thereto,
and certain other legal matters as to British Virgin Islands law will be passed upon for us by Ogier. The legality of the securities for
any underwriters, dealers, or agents will be passed upon by counsel as may be specified in the applicable prospectus supplement.
EXPERTS
ZH CPA, LLC. (“ZH CPA”),
an independent registered public accounting firm, audited our financial statements for the fiscal years ended July 31, 2021 and 2022 included
in our Annual Report on Form 10-K for the year ended July 31, 2022, as set forth in their report included therein, which is incorporated
by reference in this prospectus and elsewhere in the registration statement. Our financial statements are incorporated by reference in
reliance on ZH CPA’s report, given on their authority as experts in accounting and auditing.
MATERIAL CHANGES
Except as otherwise described in our Annual Report on Form 10-K for
the fiscal year ended July 31, 2022, in our Quarterly Report on Form 10-Q for the three months ended October 31, 2022 filed under the
Exchange Act and incorporated by reference herein, and as disclosed in this prospectus or the applicable prospectus supplement, no reportable
material changes have occurred since July 31, 2022.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We file annual, quarterly,
and special reports, along with other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s
website at http://www.sec.gov; you can also find our filings on our company website: www.ir.atifchina.com.
This prospectus is part of
a registration statement on Form S-3 that we filed with the SEC to register the securities offered hereby under the Securities Act. This
prospectus does not contain all of the information included in the registration statement, including certain exhibits and schedules. You
may obtain the registration statement and exhibits to the registration statement from the SEC at the address listed above or from the
SEC’s internet site.
INFORMATION INCORPORATED BY REFERENCE
The SEC allows us to incorporate
by reference the information we file with them under certain conditions, which means that we can disclose important information to you
by referring you to those documents. The information incorporated by reference is considered to be a part of this prospectus and any information
that we file subsequent to this prospectus with the SEC will automatically update and supersede this information. The documents we are
incorporating by reference are as follows:
| |
(a) |
our Annual Report for the year ended July 31, 2022 on Form 10-K filed on November 2, 2022; |
| |
|
|
| |
(b) |
our Quarterly Report on Form 10-Q for the three months ended October 31,2022 filed on December 15,
2022; |
| |
(c) |
the description of the ordinary shares, $0.001 par value per share, contained in our registration statement on Form 8-A filed with the Commission on April 18, 2019 pursuant to Section 12(b) of the Exchange Act and all amendments or reports filed by us for the purpose of updating those descriptions. |
All documents filed by us pursuant
to Sections 13(a), 13(c), 14, or 15(d) of the Exchange Act after the initial filing date of this prospectus, through the date declared
effective, until the termination of the offering of securities contemplated by this prospectus shall be deemed to be incorporated by reference
into this prospectus. These documents that we file later with the SEC and that are incorporated by reference in this prospectus will automatically
update information contained in this prospectus or that was previously incorporated by reference into this prospectus. You will be deemed
to have notice of all information incorporated by reference in this prospectus as if that information was included in this prospectus.
We will provide to any person,
including any beneficial owner, to whom this prospectus is delivered, a copy of any or all of the information that has been incorporated
by reference in this prospectus but not delivered with this prospectus (excluding exhibits, unless the exhibits are specifically incorporated),
at no cost to the requesting party, upon request to us in writing or by telephone using the following information:
ATIF HOLDINGS LIMITED
25391 Commercentre Dr., Ste 200,
Lake Forest, CA 92630
Attn: Mr. Jun Liu
308-888-8888
ATIF HOLDINGS LIMITED
$100,000,000
Ordinary Shares
Preferred shares
Warrants
Rights
Units
, 2022
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and
Distribution.
The following table sets forth
the costs and expenses payable by the registrant in connection with this offering, other than underwriting commissions and discounts,
all of which are estimated except for the SEC registration fee.
| Securities and Exchange Commission registration fee | |
$ | 11,020.00 | |
| Accounting fees and expenses | |
$ | 5,000 | |
| Legal fees and expenses | |
$ | * | |
| Miscellaneous expenses | |
$ | * | |
| Total | |
$ | * | |
* These
fees will depend on the type of securities offered and number of offerings and, therefore, cannot be estimated at this time. In accordance
with Rule 430B under the Securities Act, additional
information regarding estimated fees and expenses will be provided at the time information as to an offering is included in a prospectus
supplement.
Item 15. Indemnification of Directors and
Officers.
To the extent permitted by
law, we shall indemnify each existing or former secretary, director (including alternate director), and any of our other officers (including
an investment adviser or an administrator or liquidator) and their personal representatives against:
| |
(a) |
all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by the existing or former secretary or officer in or about the conduct of our business or affairs or in the execution or discharge of the existing or former secretary’s or officer’s duties, powers, authorities or discretions; and |
| |
(b) |
without limitation to paragraph (a) above, all costs, expenses, losses or liabilities incurred by the existing or former secretary or officer in defending (whether successfully or otherwise) any civil, criminal, administrative or investigative proceedings (whether threatened, pending or completed) concerning us or our affairs in any court or tribunal, whether in the BVI or elsewhere. |
These indemnities will only
apply if the person acted honestly and in good faith with a view to our best interests and, in the case of criminal proceedings, the person
had no reasonable cause to believe that his conduct was unlawful.
To the extent permitted by
law, we may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by
an existing or former secretary or any of our officers in respect of any matter identified in above on condition that the secretary or
officer must repay the amount paid by us to the extent that it is ultimately found not liable to indemnify the secretary or that officer
for those legal costs.
Item 16. Exhibits.
The following documents are
filed as exhibits to this registration statement, including those exhibits incorporated herein by reference to a prior filing under the
Securities Act or the Exchange Act, as indicated in parentheses:
| (1) |
If applicable, to be filed by amendment or by a report filed under the Securities Exchange Act of 1934, as amended, and incorporated herein by reference. |
Item 17. Undertakings
| (a) |
The undersigned registrant hereby undertakes: |
| |
(1) |
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
| |
(i) |
to include any prospectus required by Section 10(a)(3) of the Securities Act; |
| |
(ii) |
to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this registration statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
| |
(iii) |
to include any material information with respect to the plan of distribution not previously disclosed in this registration statement or any material change to such information in this registration statement; |
provided, however,
that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in reports filed with or furnished to the SEC by the registrant pursuant to Section 13 or Section
15(d) of the Exchange Act that are incorporated by reference in this registration statement, or is contained in a form of prospectus filed
pursuant to Rule 424(b) that is part of this registration statement.
| |
(2) |
That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
| |
(3) |
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
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(4) |
That, for the purpose of determining liability under the Securities Act to any purchaser: |
| |
(i) |
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of this registration statement as of the date the filed prospectus was deemed part of and included in this registration statement; and |
| |
(ii) |
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in this registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which the prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; provided, however, that no statement made in a registration statement or prospectus that is part of this registration statement or made in a document incorporated or deemed incorporated by reference into this registration statement or prospectus that is part of this registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in this registration statement or prospectus that was part of this registration statement or made in any such document immediately prior to such effective date. |
| |
(5) |
That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
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(i) |
any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
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(ii) |
any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by such undersigned registrant; |
| |
(iii) |
the portion of any other free writing prospectus relating to the offering containing material information about such undersigned Registrant or its securities provided by or on behalf of the undersigned registrant; and |
| |
(iv) |
any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
| (b) |
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in this registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
| (c) |
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. |
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Lake Forest on December 21, 2022.
| |
ATIF HOLDINGS LIMITED |
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|
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By: |
/s/ Jun Liu |
| |
Name: |
Jun Liu |
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Title: |
Chief Executive Officer
(Principal Executive Officer) |
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|
|
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By: |
/s/ Yue Ming |
| |
Name: |
Yue Ming |
| |
Title: |
Chief Financial Officer
(Principal Financial Officer) |
KNOW ALL BY THESE PRESENTS,
that each person whose signature appears below hereby constitutes and appoints Jun Liu and Yue Ming and each of them, his or her true
and lawful agent, proxy and attorney-in-fact, with full power of substitution and resubstitution, for and in his or her name, place and
stead, in any and all capacities, to (1) act on, sign and file with the Securities and Exchange Commission any and all amendments
(including post-effective amendments) to this Registration Statement together with all schedules and exhibits thereto and any subsequent
registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, together with all schedules and
exhibits thereto, (2) act on, sign and file such certificates, instruments, agreements and other documents as may be necessary or
appropriate in connection therewith, (3) act on and file any supplement to any prospectus included in this Registration Statement
or any such amendment or any subsequent registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as
amended, and (4) take any and all actions which may be necessary or appropriate to be done, as fully for all intents and purposes
as he or she might or could do in person, hereby approving, ratifying and confirming all that such agent, proxy and attorney-in-fact or
any of his or her substitutes may lawfully do or cause to be done by virtue thereof.
Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates
indicated.
| Signature |
|
Title |
|
Date |
| |
|
|
|
|
| /s/ Jun Liu |
|
Chief Executive Officer and Chairman of the Board |
|
December 21, 2022 |
| Jun Liu |
|
(Principal Executive Officer) |
|
|
| |
|
|
|
|
| /s/ Yue Ming |
|
Chief Financial Officer and Director |
|
December 21, 2022 |
| Yue Ming |
|
(Principal Financial and Accounting Officer) |
|
|
| |
|
|
|
|
| /s/ Kwong Sang Liu |
|
Director |
|
December 21, 2022 |
| Kwong Sang Liu |
|
|
|
|
| |
|
|
|
|
| /s/ Yongyuan Chen |
|
Director |
|
December 21, 2022 |
| Yongyuan Chen |
|
|
|
|
| |
|
|
|
|
| /s/ Lei Yang |
|
Director |
|
December 21, 2022 |
| Lei Yang |
|
|
|
|
II-4
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