|SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K on 10/23/2017|
Date of Report (Date of earliest event reported): October 17, 2017
STARS CLOUD GROUP, INC.
Building B4, Tai Ming International Business Court,
Tai Hu Town, Tongzhou District, Beijing,
Registrant’s telephone number, including area code: 212-206-1216
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Wecast Services Group Limited (“Wecast”), a wholly owned subsidiary of Seven Stars Cloud Group, Inc. (the “Company”), has entered into a Technical License Agreement (the “License Agreement”) with Guangxi Dragon Coin Network Technology Co., Ltd. (“Guangxi”), dated October 17, 2017, pursuant to which Wecast has agreed to provide Guangxi with a non-exclusive agreement to license the technology platform from Wecast’s Red Coin Chain JV.
Pursuant to the terms of the License Agreement, Guangxi, a subsidiary of Courage Investment Group Limited (1145.HK) (“Courage Investment Group”), will be granted a non-exclusive license from Wecast and the Red Coin Chain JV (“Red Coin”), to use Red Coin’s technology platform specifically and exclusively for real estate based securitization. In exchange and in consideration for, the non-exclusive rights to the technology, the Company will receive 17.9% of the existing total equity of Courage Investment Group, which is Guangxi’s Hong Kong listed parent company. 17.9% of Courage Investment Group’s shares are valued at approximately HK$ 151 million, based on a recent closing price trading price of HK$ 1.76. Based on that, the value of the shares is approximately $18.5 million as of the date of this announcement.
The foregoing description of the License 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 October 23, 2017, the Company issued a press release announcing the entry into the License Agreement. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.