Yesterday (3) morning, tongfang youyou issued a notice on the acquisition of Novelty Lights equity. American Lighting, an indirect wholly owned subsidiary of tongfang youyou, intends to issue 12 million us dollars (about 82.4 million yuan) to Lighten Up Holdings for two delivery.
On January 1, 2019, the parties entered into an equity purchase agreement to complete the first delivery, according to the announcement.
American Lighting purchased 80 percent of the Novelty Lights for $8,683,304.33, and the remaining 20 percent will be purchased on the second delivery date.
Tongfang youyou said that upon completion of the first delivery, the company will indirectly hold 80% of the Novelty Lights, which will become an indirect non-wholly owned subsidiary company.
According to the data, tongfang youyou is mainly engaged in r&d, sales and production of LED decorative lights, LED general lighting products, LED professional lighting products and engineering projects, providing asset management services, investment consulting services and securities trading and other businesses.
American Lighting is an indirect wholly owned subsidiary of tongfang youyou and a Lighting solution provider located in Delaware, USA.
In addition, Novelty Lights business is the direct import and sale of all seasonal, decorative or lighting lamps, light sources, tubes, bulbs and related products to North America through wholesale and retail channels, including (but not limited to) chandeliers, festival Lights and a variety of popular Novelty lamps.
Tongfang youyou said that the acquisition of Novelty Lights aims to improve the sales channels of American Lighting through the Novelty e-commerce platform.