Malaysian e-commerce company Vitaxel Group Ltd. said in a Feb. 5 SEC filing that its board of directors and shareholders of approximately 60% of the voting stock authorized an amendment to increase its shares of common stock to 200 million from 70 million.
The increase is pursuant to a purchase agreement that Vitaxel and wholly owned subsidiary Vitaxel Sdn. Bhd. entered into with Grande Legacy Inc. shareholders Lim Hui Sing and Leong Yee Ming in December 2017.
Under the terms of the deal, Vitaxel will acquire all shares of e-commerce multilevel marketing company Grande Legacy in lieu of 75 million shares. Vitaxel intends to complete the acquisition with the increase in authorized share capital.
The transaction was consummated Jan. 22, and the shares will be issued within 30 days after the authorization of the amendment by shareholders.
Vitaxel also noted that on Jan. 5, it granted Grande Legacy exclusive rights to operate a Vitaxel business in countries other than Malaysia, Singapore and Thailand for five years. After that period, Grande Legacy will be obligated to make a payment every three months to Vitaxel amounting to 55% of gross revenue received from such operations, minus operating expenses.
