Item 1.01. Entry into a Material Definitive Agreement.
On October 26, 2020, the Company acquired 10% of the issued and outstanding
shares (the "Shares") of Lianyungang Yiheyuan Elderly Services Co., Ltd., a
corporation registered in Jiangsu Province, P.R. China ("LYES") pursuant to a
Securities Purchase Agreement (the "Agreement"). LYES operates a profitable
elderly services business in its hot spring resort in Lianyungang City. In
accordance with the Agreement HQDA is purchasing the Shares in exchange for
234,845 shares of HQDA's common stock valued at $1.00 per share, which the total
value is equivalent to 10% of the originally invested cash value by the LYES
shareholders. The total original investment cash value of LYES was RMB16,
000,000 (about USD$2,348,450). The transaction value is 10% of USD$2,348,450 by
issuing HQDA's new shares at USD$1.00 per share. That is equivalent to 234,845
shares of HQDA's. The closing price for HQDA shares on the OTCQB on October 26,
2020, was $1.22.
Both parties are looking forward to expansion of the local elderly services
especially for establishing the International Wellness Town in Linayungang City,
Jiangsu province, China.
The description of the Agreement herein is qualified in its entirety by
reference to the full text of the Agreement.
Item 7.01 Regulation FD Disclosure
On November 9, 2020, HQDA issued a press release announcing the acquisition of
10% interest in Lianyungang Yiheyuan Elderly Services Co., Ltd. A copy of the
press release is being furnished as Exhibit 99.1 hereto and is incorporated into
this Item 7.01 by reference.
The information furnished pursuant to Item 7.01, including Exhibit 99.1, shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended, is not subject to the liabilities of that section and is
not deemed incorporated by reference in any filing of Basic's under the
Securities Act of 1933, as amended, unless specifically identified therein as
being incorporated therein by reference.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibits.
Exhibit
Number Exhibit
99.1 Press Release dated November 9, 2020
© Edgar Online, source Glimpses