SHANGHAI, Dec. 24, 2019 /PRNewswire/ -- China Rapid Finance
Limited (NYSE: XRF) ("XRF" or the "Company"), one of China's leading Fintech companies, today
announced that True North Financial, LLC("TNF") will invest
$8M in a private transaction for
unregistered shares of the company's stock.
On December 24, 2019, TNF
purchased 37,985,203 Class A unregistered Ordinary shares, and
3,465,574 Class B unregistered Ordinary shares, based on the
closing price on December 23, 2019,
which was $1.93 per ADS (or
$0.193 per ordinary share). The
Class B ordinary shares are entitled to 10 votes per share.
As a result of this transaction, TNF owns 36.63% of the total
outstanding share capital of the Company and 36.63% of total voting
power of the Company. The Company has not yet granted TNF any
rights to require the Company to register these private equity
securities. The definitive agreement provides that over the
next 30 days the Company and TNF will endeavor to agree, on terms
to be acceptable to both parties, to registration rights with
respect to the Class A Ordinary shares.
As consideration for the share purchase, TNF delivered to the
Company a Promissory Note in the amount of $8.0 million, that is payable in full on
January 13, 2020.
Also, as part of the transaction, TNF was granted the right to
designate up to 2 qualified directors to the Board, subject to
ratification by the shareholders.
We are excited about True North Financial's commitment to China
Rapid Finance as it continues its transition into the new business
model.
About China Rapid Finance
China Rapid Finance Limited (NYSE: XRF) is one of China's leading Fintech companies that offers
award-winning decisioning technology and marketing services that
addresses China's growing consumer
credit market. The Company utilizes its proprietary technology and
18 years of experience to provide its services. The Company is
establishing partnerships and is currently developing strategic
alternatives and new businesses in financial technology, marketing
services and portfolio management. For more information, please
visit http://ir.crfchina.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended. These forward-looking statements are made under the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These statements can be identified by
terminology such as "may," "will," "expects," "anticipates,"
"aims," "future," "intends," "plans," "believes," "estimates,"
"likely to" and similar statements. The Company may also make
written or oral forward-looking statements in its reports filed
with, or furnished to, the U.S. Securities and Exchange Commission,
in its annual reports to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the Company's ability to regain
compliance with NYSE continued listing standards, unexpected
difficulties in the Company's pursuit of its goals and strategies;
the unexpected developments, including slow growth, in the consumer
lending market; reduced demand for, and market acceptance of, the
Company's products and services; difficulties keeping and
strengthening relationships with borrowers or investors;
difficulties of expanding data and channel partnerships,
potentially costly servicing activities; competition in the
consumer lending market; PRC governmental regulations and policies;
and general economic and business conditions in the regions where
the Company provides products and services. Further information
regarding these and other risks is included in the Company's
reports filed with, or furnished to, the Securities and Exchange
Commission. All information provided in this announcement and in
the attachments is as of the date of this announcement, and the
Company undertakes no duty to update such information except as
required under applicable law.
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SOURCE China Rapid Finance