Wetouch Technology Inc. announced that it has received $17.7 million from Sichuan Renshou Shigao Tianfu Investment Co. Ltd. as compensation for the Company’s relocation from its existing location in Meishan City to Chengdu, Sichuan province. Based on a compensation agreement signed by the Company and Sichuan Rensou on March 16, 2021, the total compensation is RMB 115.2 million, including RMB 100.2 million based upon the appraised value of the property plus an extra 15% relocation bonus of RMB 15.0 million pursuit to an appraisal report from an independent appraiser. On March 18, 2021, Wetouch received a total amount of RMB 115.2 million as the total amount of compensation from Sichuan Renshou. In order to minimize the interruption of business, a newly acquired wholly-owned subsidiary of Wetouch in Sichuan, China entered into a leaseback agreement with Sichuan Renshou on March 16, 2021. The Leaseback Agreement entitles Wetouch to lease back the Property commencing from April 1, 2021 until December 31, 2021, at a monthly rent of RMB 300,000. The Company will be able to continue its operation until the end of 2021. The Company is actively searching for an appropriate parcel in Chengdu Medicine City (Technology Park), Wenjiang District, Chengdu for the construction of new production facilities and office buildings. The Company expects that the construction and relocation will be completed prior to December 31, 2021, although there is no absolute assurance.