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Based upon 13,442,000 shares of the Issuer's common stock issued and outstanding as of September 30, 2013.
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Item 1. Security and Issuer
This Schedule 13D relates to the acquisition by Wei Gong of 2,238,000 common shares, $0.001 par value (the “Shares”), of Tianli Agritech, Inc. (the "Issuer"), having its principal executive offices at Suite K, 12th Floor, Building A, Jiangjing Mansion
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228 Yanjiang Ave., Jiangan District, Wuhan City,Hubei Province, China 430010.
Item 2. Identity and Background
(a) The reporting person for purposes of this statement is Wei Gong (the "Reporting Person").
(b) The business address of the Reporting Person is c/o the Issuer, Suite K, 12th Floor, Building A, Jiangjing Mansion
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228 Yanjiang Ave., Jiangan District, Wuhan City,Hubei Province, China 430010.
(c) The Reporting Person is a director of the Wuhan East Lake Hi-tech Innovation Centre, a business incubator in Wuhan, China.
(d) The Reporting Person has not, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) The Reporting Person has not, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or finding any violation with respect to such laws.
(f) The Reporting Person is a citizen of the People’s Republic of China.
Item 3. Source and Amount of Funds
The source of the funds, in the aggregate sum of $2,596,080, used by the Reporting Person to acquire the Shares to which this statement relates was personal funds.
Item 4. Purpose of Transaction
(a) The Reporting Person has agreed to purchase an additional 522,000 common shares (the “Additional Shares”) at a per share purchase price of $1.16, subject to shareholder approval or the Issuer’s qualification as a foreign private issuer pursuant to the exemption from Nasdaq Marketplace Rule 5635(d). The Reporting Person does not have any other plan or proposal which relates to or which would have the effect of any acquisition of additional, or disposition of any, securities of the Issuer.
(b) The Reporting Person does not have any plan or proposal which relates to or would result in an extraordinary transaction involving the Issuer or any subsidiary of the Issuer.
(c) The Reporting Person does not have any plan or proposal which relates to or would result in a sale or transfer of a material amount of the assets of the Issuer or any subsidiary of the Issuer.
(d) In connection with his acquisition of the Shares, the Issuer has agreed to use its best efforts to appoint the Reporting Person as a director of the Issuer, and on October 17, 2013, the Reporting Person was appointed a director of the Issuer. The Reporting Person does not have any other plan or proposal which relates to or would result in any change in the present board of directors or management of the Issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board.
(e) The Reporting Person does not have any plan or proposal which relates to or would result in a material change in the Issuer's present capitalization or dividend policy.
(f) The Reporting Person does not have any plan or proposal which relates to or would result in a material change in the business or corporate structure of the Issuer.
(g) The Reporting Person does not have any plan or proposal which relates to or would result in a change in the Issuer's charter, by-laws or instruments corresponding thereto which may impede the acquisition of the Issuer by any person.
(h) The Reporting Person does not have any plan or proposal which relates to or would result in causing a class of securities of the Issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association.
(i) The Reporting Person does not have any plan or proposal which relates to or would result in a class of equity securities of the Issuer becoming eligible for termination or registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended.
(j) The Reporting Person does not have any plan or proposal which relates to or would result in any action similar to those described in paragraphs (a) through (i) above.
Item 5. Interest in Securities of the Issuer
(a) The Reporting Person owns an aggregate of 2,238,000 common shares of the Issuer, representing approximately 16.65% of the issued and outstanding common shares of the Issuer based upon the 13,442,000 common shares of the Issuer issued and outstanding as of September 30, 2013.
(b) The Reporting Person has sole power to vote or direct to vote of the Shares and the sole power to dispose or to direct the disposition of the Shares.
(c) Except as set forth in Item 1 above, the Reporting Person has not effected any transaction involving the Issuer's securities within the sixty (60) preceding days.
(d) No other person has the right to receive or the right to direct the receipt of dividends from, or the proceeds from the sale of, the Shares.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
The Reporting Person has agreed to purchase an additional 522,000 common shares at a per share purchase price of $1.16, subject to shareholder approval or the Issuer’s qualification as a foreign private issuer pursuant to the exemption from Nasdaq Marketplace Rule 5635(d). The Reporting Person has agreed that he will not sell the Shares or the Additional Shares prior to 18 months after the date of acquisition and thereafter at not less than $1.16 per share. The Issuer has agreed to use its best efforts to cause the election of the Reporting Person to its Board of directors in connection with his acquisition of the Shares. The Reporting Person does not have any other contract, arrangement, understanding or relationship with any person with respect to the Shares.
Item 7. Material to be filed as Exhibits
Subscription Agreement dated September 28, 2013.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this amendment to this statement is true, complete and correct.
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October 23, 2013
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/s/ Wei Gong
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Wei Gong
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Exhibit
REGULATION S SUBSCRIPTION AGREEMENT
AND INVESTMENT REPRESENTATION
This Regulation S Subscription and Investment Representation is entered into this 28th day of September, 2013 between Tianli Agritech, Inc., a British Virgin Islands corporation (the “Company”), and Mr. Gong Wei (the “Investor”).
Preliminary Statement
The Company has offered the Investor the opportunity to purchase 2,760,000 shares of the common stock of the Company at a purchase price of $1.16 per share, $3,201,600 in the aggregate, to be paid in cash at the closing and the Investor has agreed to do so on the terms and conditions set forth herein.
The Company is currently subject to Nasdaq Marketplace Rule 5635(d) which limits the number of shares of the Company’s common stock that can be sold in a private placement to no more than 20% of the shares outstanding, subject to certain exceptions as provided in the Nasdaq Marketplace Rules.
To enable the Company to comply with Nasdaq’s Rules, the Investor will acquire 2,238,000 shares of the Company’s common stock simultaneously with the execution of this Agreement and acquire the balance, 522,000 shares, upon satisfaction of one of the conditions set forth in Section 1.1(i) or 1.1(ii) below.
NOW THEREFORE, indenting to be legally bound the parties hereto agree as follows:
SECTION 1
1.1
Subscription
.
The Investor, intending to be legally bound, hereby irrevocably subscribes for and agrees to purchase 2,760,000 shares of the common stock of the Company (the “Shares”) for an aggregate purchase price of $3,201,600 (the “Purchase Price”), which is equivalent to $1.16 per Share, and the Company, intending to be legally bound, hereby agrees to issue the Shares to the Investor upon receipt of the Purchase Price, provided, however, that the Company’s obligation to issue and the Investor’s obligation to purchase 522,000 of such 2,760,000 shares are subject to (i) the receipt by the Company from Nasdaq of an acknowledgement that it is exempt from Marketplace Rule 5635(d) or (ii) the receipt by the Company of a vote of its shareholders approving the sale by the Company to the Investor of a number of shares greater than 20% of the shares currently outstanding.
SECTION 2
2.1
Closing.
The closing (the "Initial Closing") of the purchase and sale of the 2,238,000 Shares, on the terms and subject to the conditions set forth in this subscription agreement, shall occur simultaneously with the acceptance by the Company of the Investor's subscription, as evidenced by the Company’s execution of this Subscription Agreement. The parties have agreed that the Initial Closing shall take place no later than September 29, 2013. At the Initial Closing the Investor will deliver $2,596,080 to the Company and, within five days, the Company will deliver the Investor a certificate registered in the name of Investor representing 2,238,000 shares of its common stock.
The closing (the "Second Closing") of the purchase and sale of the 522,000 Shares, on the terms and subject to the conditions set forth in this subscription agreement, shall occur on a date selected by the Company but in no event later than three days after the first to occur of (i) the receipt by the Company from Nasdaq of an acknowledgement that it is exempt from Marketplace Rule 5635(d) or (ii) the receipt by the Company of a vote of its shareholders approving the sale by the Company to the Investor of a number of shares greater than 20% of the shares currently outstanding. At the Second Closing the Investor will deliver $605,520 to the Company and, within five days, the Company will deliver the Investor a certificate registered in the name of Investor representing 522,000 shares of its common stock.
With the consent of the Company, not to be unreasonably withheld, Investor can satisfy his obligation to pay the amount due at the Initial Closing or the Second Closing by paying to the Company’s subsidiary, Wuhan Fengze Agricultural Science and Technology Development Co., Ltd., the amount in Renminbi equal to the dollar amount payable.
SECTION 3
3.1
Investor Representations and Warranties
. The Investor hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:
(a)
Investment Purposes
. The Investor is acquiring the Shares for his own account as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part in any transactions that would be in violation of the Securities Act or any state securities or "blue-sky" laws. No other person has a direct or indirect beneficial interest in, and the Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to, the Shares or any part of the Shares for which the Investor is subscribing that would be in violation of the Securities Act or any state securities or "blue-sky" laws.
(b)
Authority
. The Investor has full power and authority to enter into this Agreement, the execution and delivery of this Agreement has been duly authorized, if applicable, and this Agreement constitutes a valid and legally binding obligation of the Investor.
(c)
Investment Experience
. The Investor, or the Investor’s professional advisors, has such knowledge and experience in finance, securities, taxation, investments and other business matters as to evaluate investments of the kind described in this Subscription Agreement. By reason of the business and financial experience of the Investor or his professional advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), the Investor can protect his own interests in connection with the transactions described in this Subscription Agreement.
(d)
Exemption from Registration
. The Investor acknowledges its understanding that the offering and sale of the Shares is intended to be exempt from registration under the Securities Act. In furtherance thereof, in addition to the other representations and warranties of the Investor made herein, the Investor further represents and warrants to and agrees with the Company and its affiliates that the Investor has been provided an opportunity for a reasonable period of time prior to the date hereof to obtain additional information concerning the offering of the Shares, the Company and all other information to the extent the Company possesses such information or can acquire it without unreasonable effort or expense.
(e)
No Other Company Representations
. No representations or warranties have been made to the Investor by the Company, or any officer, employee, agent, affiliate or subsidiary of the Company, other than the representations of the Company contained herein, and in subscribing for Shares the Investor is not relying upon any representations other than those contained herein.
(f)
Compliance with Laws
. Any resale of the Shares during the ‘distribution compliance period’ as defined in Rule 902(f) to Regulation S shall only be made in compliance with exemptions from registration afforded by Regulation S. Further, any such sale of the Shares in any jurisdiction outside of the United States will be made in compliance with the securities laws of such jurisdiction. The Investor will not offer to sell or sell the Shares in any jurisdiction unless the Investor obtains all required consents, if any.
(g)
Regulation S Exemption
. The Investor understands that the Shares are being offered and sold in reliance on an exemption from the registration requirements of United States federal and state securities laws under Regulation S promulgated under the Securities Act and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the applicability of such exemptions and the suitability of the Investor to acquire the Shares. In this regard, the Investor represents, warrants and agrees that:
(h) The Investor is not a U.S. Person (as defined in the Securities Act) and is not an affiliate (as defined in Rule 501(b) under the Securities Act) of the Company and is not acquiring the Shares for the account or benefit of a U.S. Person.
(i) At the time of the origination of contact concerning this Agreement and the date of the execution and delivery of this Agreement, the Investor was outside of the United States.
(j) The Investor will not, during the period commencing on the date of issuance of the Shares and ending on the first anniversary of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law (the “Restricted Period”), offer, sell, pledge or otherwise transfer the Shares in the United States, or to a U.S. Person for the account or for the benefit of a U.S. Person, or otherwise in a manner that is not in compliance with Regulation S.
(k) The Investor will, after expiration of the Restricted Period, offer, sell, pledge or otherwise transfer the Shares only pursuant to registration under the Securities Act or an available exemption therefrom and, in accordance with all applicable state and foreign securities laws.
(l) The Investor was not in the United States, engaged in, and prior to the expiration of the Restricted Period will not engage in, any short selling of or any hedging transaction with respect to the Shares, including without limitation, any put, call or other option transaction, option writing or equity swap.
(m) Neither the Investor nor or any person acting on its behalf has engaged, nor will engage, in any directed selling efforts to a U.S. Person with respect to the Shares and the Investor and any person acting on his behalf have complied and will comply with the “offering restrictions” requirements of Regulation S under the Securities Act.
(n) The transactions contemplated by this Agreement have not been pre-arranged with a buyer located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements of the Securities Act.
(o) Neither the Investor nor any person acting on its behalf has undertaken or carried out any activity for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States, its territories or possessions, for any of the Shares. The Investor agrees not to cause any advertisement of the Shares to be published in any newspaper or periodical or posted in any public place and not to issue any circular relating to the Shares, except such advertisements that include the statements required by Regulation S under the Securities Act, and only offshore and not in the U.S. or its territories, and only in compliance with any local applicable securities laws.
(p) Each certificate representing the Shares shall be endorsed with the following legends, in addition to any other legend required to be placed thereon by applicable federal or state securities laws:
(A) “THE SECURITIES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT.”
(B) “TRANSFER OF THESE SECURITIES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”
(C) “TRANSFER OF THESE SECURITIES PRIOR TO EIGHTEEN MONTHS FROM THE DATE OF THIS CERTIFICATE IS PROHIBITED. THEREAFTER, THESE SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED FOR A PRICE OF LES THAN $1.16 PER SHARES OR UPON THE DEATH OF THE HOLDER HEREOF. IN THE EVENT OF THE TRANSFER OF THESE SECURITIES UPON THE DEATH OG THE HOLDER, THE TRANSFER OF THESE SECURITIES BY THE TRASFEREE WILL BE SUBJECT TO THE FOREGOING RESTRICTIONS.”
(q) The Investor consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company, if any, in order to implement the restrictions on transfer of the Shares set forth in this Section.
(r)
Receipt of Information
. The Investor has received all documents, records, books and other information pertaining to the Investor’s investment in the Company that has been requested by the Investor.
(s)
No Reliance
. Other than as set forth herein, the Investor is not relying upon any other information, representation or warranty by the Company or any officer, director, stockholder, agent or representative of the Company in determining to invest in the Shares. The Investor has consulted, to the extent deemed appropriate by the Investor, with the Investor’s own advisers as to the financial, tax, legal and related matters concerning an investment in the Shares and on that basis believes that her investment in the Shares is suitable and appropriate for the Investor.
(t)
No Governmental Review
. The Investor is aware that no federal or state agency has (i) made any finding or determination as to the fairness of this investment, (ii) made any recommendation or endorsement of the Shares or the Company, or (iii) guaranteed or insured any investment in the Shares or any investment made by the Company.
SECTION 4
4.1
The Investor’s Covenants
. The Investor covenants and agrees with the Company that he will not or otherwise transfer, other than in accordance with the law upon his death, all or any portion of the Shares for a period of 18 months commencing on the date of the Closing or thereafter at a price of less than $1.16 per share (subject to adjustment in the event of any stock splits). In the event of the transfer of the Shares upon the death of the Investor, the transfer of the Shares by the transferee will be subject to the foregoing restrictions.
4.2
Company Covenants
.
(a)
Appointment as Director
. The Company covenants and agrees with the Investor that within a reasonable period of time following the Closing it will use its best efforts to cause its Board of Directors to take whatever actions are necessary or desirable to cause the nomination and election of the Investor as a director of the Company.
(b)
Satisfaction of Conditions
. The Company covenants and agrees with Investor that it will exercise commercially reasonable efforts to achieve the satisfaction of one of the conditions set forth in Section 1.1(i) and 1.1(ii) as soon as reasonably practical after the date hereof.
SECTION 5
5.1
Company’s Representations and Warranties
. The Company represents and warrants to the Investor as follows:
(a)
Organization of the Company
. The Company is a corporation duly organized and validly existing and in good standing under the laws of the British Virgin Islands.
(b)
Authority
. (a) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement; (b) the execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further consent or authorization of the Company or its Board of Directors or stockholders is required; and (c) this Agreement has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.
(c)
Exemption from Registration; Valid Issuances
. The Shares, in accordance with the terms and on the bases of the representations and warranties of the Investor set forth herein, may and shall be properly issued by the Company to the Investor pursuant to any applicable federal or state law. When issued and paid for as herein provided the Shares shall be duly and validly issued, fully paid, and non-assessable. Neither the sales of the Shares pursuant to, nor the Company's performance of its obligations under, this Agreement shall (i) result in the creation or imposition of any liens, charges, claims or other encumbrances upon the Shares or any of the assets of the Company. The Shares shall not subject the Investor to personal liability by reason of the ownership thereof.
(d)
No General Solicitation or Advertising in Regard to this Transaction
. Neither the Company nor any of its affiliates nor any person acting on its or their behalf (a) has conducted or will conduct any general solicitation (as that term is used in Rule 502(c) of Regulation D) or general advertising with respect to any of the Shares, or (b) made any offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration of the Common Stock under the Securities Act.
SECTION 6
6.1
Indemnity
. The Investor agrees to indemnify and hold harmless the Company, its officers and directors, employees and its affiliates and their respective successors and assigns and each other person, if any, who controls any thereof, against any loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon any false representation or warranty or breach or failure by the Investor to comply with any covenant or agreement made by the Investor herein or in any other document furnished by the Investor to any of the foregoing in connection with this transaction.
6.2
Modification
. Neither this Agreement nor any provisions hereof shall be modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.
6.3
Notices
. Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested hereunder shall be sufficiently given if (a) deposited, prepaid, with a recognized international courier service, (b) delivered personally at such address, (c) upon the expiration of twenty four (24) hours after transmission, if sent by facsimile if a confirmation of transmission is produced by the sending machine (and a copy of each facsimile promptly shall be sent as provided in clause (a), (in each case to the parties at their respective addresses set forth below their signatures to this Agreement (or at such other address for a party as shall be specified by like notice; provided that the notices of a change of address shall be effective only upon receipt thereof).
6.4
Counterparts
. This Agreement may be executed through the use of separate signature pages or in any number of counterparts and by facsimile, and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. Signatures may be facsimiles.
6.5
Binding Effect
. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and assigns.
6.6
Entire Agreement
. This Agreement and the documents referenced herein contain the entire agreement of the parties and there are no representations, covenants or other agreements except as stated or referred to herein and therein.
6.7
Assignability
. This Agreement is not transferable or assignable by the Investor.
6.8
Further Assurances
. Upon request from time to time, the Investor shall execute and deliver all documents and do all other acts that may be necessary or desirable, in the reasonable opinion of the Company or its counsel, to effect the subscription for the Shares in accordance herewith.
IN WITNESS WHEREOF
, the parties hereto have executed this Agreement as of the day and year this subscription has been accepted by the Company as set forth below.
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/s/ Wei Gong
Wei Gong
Address:
No. 6, Floor 4,
No.24-1 Hangkongxiaolu, Jianghan District, Wuhan City, Hubei Province, China 430000
Identification Number:
China:
420104195404270018
US: N/A
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A
CCEPTANCE OF SUBSCRIPTION
ACCEPTED BY:
Tianli Agritech, Inc.
By:
/s/ Hanying Li
Hanying Li
Chairwoman and CEO
Address:
Suite K, 12th Floor, Building A, Jiangjing Mansion
228 Yanjiang Ave., Jiangan District, Wuhan City
Hubei Province, China 430010