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DEF 14A
SEVEN STARS CLOUD GROUP, INC. filed this Form DEF 14A on 11/20/2017
Entire Document
 

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

Security Ownership of Certain Beneficial Owners

 

The following table sets forth information regarding beneficial ownership of our common stock as of November 1, 2017 (i) by each person who is known by us to beneficially own more than 5% of our common stock; (ii) by each of our executive officers and directors as a group; and (iii) by all of our executive officers and directors as a group. Unless otherwise specified, the address of each of the persons set forth below is in care of Seven Stars Cloud Group, Inc., (“Company”) No.4 Drive-in Movie Theater Park, No. 21, Liangmaqiao Road, Chaoyang District, Beijing.

 

      Shares Beneficially Owned (1)     
Name and
Address of
     Common Stock(2)   Series A Preferred Stock (3)   Combined Common Stock and
Series A(4)
 
Beneficial
Owner
  Office, If
Any
  Shares   % of
Class
   Shares   % of
Class
   Votes   Percentage 
Directors and Officers                                 
Bruno Wu  CEO and Chairman   24,615,775    38.4%   7,000,000    100%   33,949,105(5)   46.2%
Bing Yang  Former CEO and Director   43,750       0       43,750    
Simon Wang  CFO   0    *   0    *   0    *
Mingcheng Tao  Former CEO and Director   0    *   0    *   0    
Shane McMahon  Vice Chairman   6,298,006(6)   9.6%   0    *   6,298,006    8.4%
Mei Chen  Former CFO   0    *   0    *   0    
Grace He  Former Vice President of Finance   0    *   0    *   0    
Weicheng Liu  Former CEO and Director   2,903,120(7)   4.6%   0    *   2,903,120    4.0%
Yue Xu  Former Vice President   0    *   0    *   0    
                                  
James Cassano  Director   91,782(8)   *   0    *   91,782    
Jin Shi  Director   59,475    *   0    *   59,475    
Jerry Fan  Director   14,793    *   0    *   14,793    
Robert Benya  Director   0    *   0    *   0    
Xin Wang  Director   0    *   0    *   0    
All officers and directors as a group (14 persons named above)      34,026,701    50.4%   7,000,000    100%   43,360,034    56.4%
5% Securities Holders                                 
                                  
C Media Limited                                 
CN11 Legend Town, No. 1 Ba Li Zhuang Dong Li Chaoyang District, Beijing 100025 China      5,714,285    9.2%   0       5,714,285    8.0%
Sun Seven Stars Media Group Limited                                 
Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands      5,620,968    9.0%   0    *   5,620,968(5)   7.8%
Vidente Co., Ltd.                                 
Ace High-End Tower 8, 12th Floor Seoul 153797 Republic of Korea      3,636,364    5.8%   0       3,636,364    5.1%
Wecast Media Investment Management Limited                                 
Wing On Centre, 111 Connaught Road Central, 16th Floor, Hong Kong      3,384,849    5.4%   7,000,000    100%   12,718,179(5)   17.7%

 

* Less than 1%.

 

 

 

(1)Beneficial Ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Each of the beneficial owners listed above has direct ownership of and sole voting power and investment power with respect to our securities. For each beneficial owner above, any options and restricted shares of common stock exercisable within 60 days have been included in the denominator.

 

(2)Based on 62,339,078 shares of our Common Stock outstanding as of November 1, 2017.

 

(3)Based on 7,000,000 shares of Series A Preferred Stock issued and outstanding as of November 1, 2017, with the holders thereof being entitled to cast ten (10) votes for every share of Common Stock that is issuable upon conversion of a share of Series A Preferred Stock (each share of Series A Preferred Stock is convertible into 0.1333333 shares of Common Stock), or a total of 9,333,330 votes.

 

(4)Represents total voting power with respect to all shares of our Common Stock and Series A Preferred Stock.

 

(5)Includes (i) 7,000,000 shares of Series A Preferred Stock, (ii) 22,797,593 shares of Common Stock, (iii) 1,818,182 shares underlying warrants exercisable within 60 days at $2.75 per share. 14,793 shares of Common Stock are beneficially owned directly by Bruno Wu and 189,091 shares of Common Stock are beneficially owned by Lan Yang, the spouse of Bruno Wu. 3,384,849 shares of Common Stock and the 7,000,000 shares of Series A Preferred Stock are beneficially owned directly by Wecast Media Investment Management Limited, a Hong Kong Company (“WMIML”) a wholly–owned subsidiary of Shanghai Sun Seven Stars Cultural Development Limited, a PRC company (“SSSSCD”) a wholly– owned subsidiary of Tianjin Sun Seven Stars Culture Development Limited, a PRC company (“TSSSCD”) a wholly–owned subsidiary of Beijing Sun Seven Stars Culture Development Limited, a PRC company (“SSS”) a directly controlled subsidiary of Tianjin Sun Seven Stars Partnership Management Co., Ltd., a PRC company (“TSSS”). Lan Yang, who is the direct controlling shareholder and the Chairperson of TSSS, is the spouse of the Company’s director Bruno Wu, who serves as the Chairman, Chief Executive Officer and as a director of SSS. 5,620,968 shares of Common Stock are beneficially owned directly by Sun Seven Stars Media Group Limited, a British Virgin Islands Company (“SSSMG”) a wholly-owned entity of Lan Yang. 1,652,376 shares of Common Stock are beneficially owned directly by Seven Stars Global Cloud Group Limited (“SSGCG”, formally known as Wecast Media Group Limited, “WMG”), a Hong Kong Company and a wholly-owned subsidiary of BT Capital Global Limited, a British Virgin Islands Company (“BT”) a wholly-owned subsidiary of SSSMG. 11,935,516 shares of Common Stock, beneficially owned by WMG earlier, were distributed to certain shareholders on September 1, 2017.  As a condition to the distribution, the Company entered into a Stockholder Proxy and Lock-Up Agreement (the “Proxy Agreement”) with Mr. Wu and the shareholders. Pursuant to the terms of the Proxy Agreement, each shareholder (i) provided Mr. Wu the right to vote such shareholder’s shares until the shareholder 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 shareholder’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 shareholder becomes the legal holder of the Shares, whichever is later. Each of BT, SSS, Mr. Wu, TSSS, Mrs. Yang, TSSSCD and SSSSCD shares with WMIML, SSSMG and SSGCG voting and dispositive power over the securities held by WMIML, SSSMG and SSGCG. Each of BT, SSS, Mr. Wu, TSSS, Mrs. Yang, TSSSCD and SSSSCD expressly disclaims beneficial ownership of securities held by any person or entity, except to the extent of their pecuniary interest therein

 

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