|SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K/A on 08/14/2017|
Wecast Services Group Limited
December 31, 2015 and December 31, 2016
Note 14 - Subsequent events
(a)On January 30, 2017, BT entered into a Securities Purchase Agreement with SSC, pursuant to which SSC agreed to purchase and BT agreed to sell all of the outstanding capital stock of SVG for an aggregate purchase price of (i) $800,000; and (ii) a Promissory Note.
(b) At the end of March in 2017, Shanghai Wecast closed Ningbo branch, and cease the operation of Dalian branch at the end of February. They ended the lease contracts with total penalty of $41,254.
(c) On June 9, 2017, Seven Stars Cloud Group, Inc. entered into a Securities Purchase Agreement with Redrock Capital Group Limited, a Cayman Islands company (“Redrock”) and affiliate of the SSC’s chairman Bruno Wu, and Sun Seven Stars Media Group Limited, a Hong Kong company, one of the Group’s largest shareholders, controlled by the SSC’s chairman Bruno Wu, as guarantor, pursuant to which SSC agreed to purchase and Redrock agreed to sell 51% of the outstanding capital stock (the “NextGen Common Shares”) of NextGen Exchange Group Inc., a Cayman Islands company (“NextGen”) for the sole consideration of SSC adding NextGen to the Sun Video Business acquired by SSC under that certain Securities Purchase Agreement entered into with BT Capital Global Limited on January 30, 2017 (the “Sun Video SPA”) and thereby including the revenue and gross profit from NextGen in the calculation of the SVG Performance Guarantees set forth in the Sun Video SPA.
(d) The Group is expending its consulting business in 2017. On March 17, 2017, SVG WFOE entered into a consulting service contract with Guizhou Sun Seven Stars Technology Trading Platform Limited, pursuant to which SVG WFOE provided consulting service to Guizhou Sun Seven Stars Technology Trading Platform Limited’s Platform-as-a-Service project utilizing SVG WFOE’s resources and related consulting service fee is RMB 7,500,000 ($1,084,105).
The Group has evaluated subsequent events through August 14, 2017, the date on which the financial statements were available to be issued.