CIMG Announced Agreement With Shanghai Huomao Involving 51% Equity Transfer For 200K Shares; Will Jointly Operate Liquor And Dendrobium Industries; Xiaocheng Hao To Be Appointed CEO After Acquisition

CIMG Inc. ("CIMG" or the "Company") (NASDAQ:IMG), a company with a heritage in specialty coffee and an emerging business in broader consumer food and beverage products, today announced that its wholly-owned subsidiary in China, Zhongyan Shangyue Technology Co., Ltd., has signed a Business Cooperation Intent Agreement with Shanghai Huomao Cultural Development Co., Ltd. ("Huomao"). In the future, both parties of the agreement will jointly operate Huomao's liquor industry and the dendrobium industry. 

 

Shanghai Huomao Cultural Development Co., Ltd. owns the premium Chinese liquor brand Huomao. Huomao redefines the drinking experience of high-end Chinese liquor through its unique brewing technology, offering a premium choice for global Chinese liquor enthusiasts that emphasizes the importance of both health and enjoyment. Pursuant to the agreement, three shareholders of Huomao intend to transfer an aggregate of 51% of their equity interest in Huomao to Zhongyan (the "Transfer") in exchange for 200,000 shares of CIMG's common stock, par value $0.00001 per share ("Common Stock"), to be issued to the designated parties. The Common Stock shall be subject to a six-month lock-up period. The parties to the Agreement plan to consummate the Transfer within 15 calendar days from the date of the Agreement.

 

The Company also agreed to appoint Mr. Xiaocheng Hao as the Chief Executive Officer of Shanghai Huomao Cultural Development Co., Ltd. after the acquisition.

 

Furthermore, the parties propose that CIMG grant incentive shares to Huomao's employees based on Huomao's sales performance following the completion of the Transfer, with the specific performance criteria and the terms of such incentive share grants to be determined through future agreements.