ITEM 8.01 OTHER EVENTS
On May 28, 2020, Mr. Guoping Chen, the former Chief Financial Officer of China
VTV Ltd. (the "Company"), acknowledged and accepted the termination notice (the
"Notice") of the pledge agreement (the "Pledge Agreement") dated March 15, 2019
issued by Mr. Tijin Song, the Chief Executive Officer of the Company, to Mr.
Guoping Chen. The Pledge Agreement was executed in connection with the merger
transaction (the "Merger") between the Company and China VTV Limited, a Hong
Kong company and now wholly-owned subsidiary of the Company. As set forth in the
Notice, Mr. Tijin Song paid Mr. Guoping Chen $300,000 pursuant to a stock
exchange agreement dated March 15, 2019, which set forth the terms and
conditions of the Merger. As a result of the payment, the Pledge Agreement
terminated automatically and the security interest on all of Mr. Tijin Song's
shares in the Company terminated.
The Company will be relying on the Securities and Exchange Commission's Order
under Section 36 of the Securities Exchange Act of 1934 Granting Exemptions From
Specified Provisions of the Exchange Act and Certain Rules Thereunder dated
March 25, 2020 (Release No. 34-88465) (the "Order") to delay the filing of its
Annual Report on Form 10-K, which was originally scheduled on May 29, 2020 (the
"Report"), due to the circumstances related to COVID-19. In particular, from
late February 2020, COVID-19 has caused severe disruptions in the audit process
of the Company (including its consolidated subsidiaries), limited access to the
Company's facilities in China and third parties by the auditors to verify the
Company's accounting, and limited support from the Company's staff. This has, in
turn, delayed the Company's ability to complete its audit and prepare the
Report. Notwithstanding the foregoing, the Company expects to file the Report no
later than July 13, 2020 (which is 45 days from the Report's original filing
deadline of May 29, 2020).
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