Axington, which is linked to the scandal-plagued Loh cousins, is poised for a $405 million reverse takeover deal of a China information services business.
Axington, which needs to find a new business in order to get out of its cash company status, will pay the vendor, one Gao Hong, new shares to be issued at no less than 19 cents each, as well as a cash portion of around $30 million.
According to Axington, the valuation of the target company, Veivo Web Technology, as indicated by the vendor, is $676 million.
According to Axington, there’s no prior relationship between Gao and its directors, the Lohs, and associates.
Veivo Web Technology, the target company, according to Axington, operates an instant messaging platform, a paid application store and a cloud application platform at www.veivo.com. It has a telecommunications and information services business operating license with its business coverage listed as information services business.
The target company is the legal and beneficial owner of Quwaner Technology (Shenzhen) Co, a wholly foreign-owned enterprise in China and it is buying the WFOE to have effective 100% control over Beijing Ruihua Veivo Internet Technology Co.
According to Axington, the consideration of $405 million is subject to further negotiation and due diligence.
Axington is majority-held by the Loh cousins, Terence and Nelson, who shot to notoriety after their purportedly Paris-based company Bellagraph Nova announced a $503 million bid for UK football club Newcastle United.
The move triggered scrutiny into their backgrounds and claims that Bellagraph Nova, run together with their partner Shen Che, had revenue of more than 12 billion euros.
The trio also published doctored photos of themselves with former US president Barack Obama.
The RTO of Axington was announced just as Terence was declared bankrupt for owing $70 million to various creditors. He had fallen out with his cousin, declaring that they’ve split their business interests.
Nelson had reportedly left the country.
