|SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K on 09/08/2017|
Seven Stars Global Cloud Group Limited (formerly known as Wecast Media Group Limited) (“SSGCG”), the largest stockholder of Seven Stars Cloud Group, Inc. (the “Company”) and an affiliate of the Company’s chairman Bruno Wu, distributed 19,897,117 shares of the Company’s common stock, $0.001 par value (the “Common Stock”) and 933,333 Series A Preferred Shares (together, the “Distributed Shares”), effective September 1, 2017, to certain stockholders (each a “Stockholder”, and together the “Stockholders”). As a condition to the distribution, the Company entered into a Stockholder Proxy and Lock-Up Agreement (the “Proxy Agreement”) with Bruno Wu and the Stockholders. Pursuant to the terms of the Proxy Agreement, each Stockholder (i) provided Mr. Wu the right to vote such Stockholder’s shares until the Stockholder ceases to be the holder of such shares of Common Stock, and (ii) agreed not to, without the prior written consent of the Company, sell, transfer and/or otherwise dispose of, any of such Stockholder’s shares of Common Stock until the later of one (1) year from the date of (i) the execution of the Proxy Agreement or (ii) the date on which the Stockholder becomes the legal holder of the Shares, whichever is later.
The foregoing description of the Proxy Agreement is not purported to be complete and is qualified in its entirety by reference to the complete text of such agreement which will be filed as an exhibit to the Company’s next Quarterly Report on Form 10-Q.
On September 1, 2017, the Company issued a press release announcing the entry into the Proxy Agreement, among other items. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.