CWX Global, formerly known as Loyz Energy, has entered into a joint venture agreement (JVA) with Zhu Chunxiao, Gan Jingjing, Zhang Jiahui and Jolene Wong Ling Yu on Feb 5.
Through the JVA, the parties have incorporated a holding company that will invest in and manage the operation of a retail supermarket chain.
There will be five directors on the board of the holding company, with two non-executive directors appointed by CWX Global and three executive directors appointed by Zhu, Gan, Zhang and Wong.
The executive directors will be responsible for the management of the holding company and its operations.
Zhu, Gan, Zhang and Wong will be responsible for procuring the necessary licences for the business. They will also provide personnel to run and operate the business.
SEE: Loyz Energy proposes name change to CWX Global with business diversification
The company will be incorporated within 10 business days of the JVA. It will have a paid-up share capital of $100,000 comprising 100,000 ordinary shares, of which, CWX Global will own 40%.
Accordingly, CWX Global will contribute $40,000 as paid-up share capital in the holding company, which will be funded through its internal resources.
Zhu, Gan, Zhang and Wong will each hold 15,000 shares in the holding company. The quartet has also granted a call option to CWX Global where the latter holds the right to require Zhu, Gan, Zhang and Wong to sell all their shares held for a consideration of $120,000.
The call option is exercisable at any time.
CWX Global’s entry into the JVA is not expected to have any material impact on the net tangible assets (NTA) per share and earnings per share (EPS) of the company for the current FY ending June 30.
As at 10.26am, shares in CWX Global are trading flat at 0.3 cent.
