The Company Also Appoints New CFO and Board Director in Association with the Acquisition
SHANGHAI, China, June 26, 2020 (GLOBE NEWSWIRE) -- Muliang Agritech, Inc. (“Muliang” or the “Company”) (OTC: MULG), a manufacturer and distributor of organic fertilizers, and grower and distributor of apples and other third-party agricultural products in China, today announced the acquisition of Viagoo Pte Ltd. (“Viagoo”), a Singapore-based logistics sharing platform that enables shippers and carriers to share and optimize resources to lower cost and increase efficiency. The Company also announced the appointment of Shaw Cheng “David” Chong as its new Chief Financial Officer (“CFO”) and Nunissait Tjandra as a member of the Board of Directors of the Company (the “Board”).
Acquisition of Viagoo
On June 19, 2020, Muliang entered into a Share Exchange Agreement (the “SEA”) and Earnout Agreement (the “Earnout Agreement”) with Viagoo and all the shareholders of Viagoo (“Viagoo Shareholders”) for the acquisition of 100% equity interest of Viagoo.
Pursuant to the SEA, Muliang shall purchase from Viagoo Shareholders all of Viagoo Shareholder’s right, title and interest in and to the Viagoo’s capital stock(“Shares”). The aggregate purchase price for the Shares shall be US$2,830,800, payable in 1,011,000 shares (the “Compensation Shares”) of the Company’s restricted common stock, valued at $2.80 per share.
Pursuant to the Earnout Agreement, the Company shall pay the former shareholders of Viagoo additional performance-related bonus up to 4,357,143 shares of Company’s common stock upon achievement of certain milestones by Viagoo on a pro-rata basis, up to fiscal year ending 2023.
Appointment of Shaw Cheng “David” Chong as CFO
Effective on June 19, 2020, Mr. Shaw Cheng “David” Chong (“Mr. Chong”) was appointed and employed as the Company’s CFO.
Mr. Chong has over 30 years working experience in medium and large private and publicly listed manufacturing companies. Familiar with navigating China, US, Europe, Singapore and other capital markets, his expertise includes international financial management, operations, auditing, funding, business development, internal control maintenance, corporate governance and investor relations. He has qualifications in professional accountancy studies from ACCA (the Association of Chartered Certified Accountants).
Appointment of Nunissait Tjandra as a Member of the Board
On June 19, 2020, the Board appointed Mr. Nunissait Tjandra (“Mr Tjandra”), Co-founder and Chief Executive Officer of Viagoo, as a Member of the Board, effective immediately.
Mr. Tjandra obtained his Bachelor of Science degree at National University of Singapore in 1989. He has over 30 years of working experience as a manager in various Technology companies.
Mr. Lirong Wang, Chairman and CEO of Muliang, commented, “Today’s announcement marks an important milestone for Muliang as we complete the first cross-border acquisition in the Company’s history. Viagoo’s platform revolutionizes the logistics industry with much improved operating efficiency and ROI through re-defined collaboration, resource management, and process optimization. We are not only impressed with the progress Viagoo has made in the Singapore market but also see tremendous opportunities that Viagoo can bring to the Chinese logistics market. I also would like to extend my warmest welcome to both Mr. Chong and Mr. Tjandra to join our management team and the Board, respectively. I firmly believe that their impressive background, combined with Viagoo’s cutting edge technologies, will put Muliang in a much better position to succeed in many years to come.”
Mr. Tjandra, Co-founder and CEO of Viagoo, added, “We are excited to join the Muliang family. Chairman Wang and I share the same vision and values of the Chinese logistics market. With combined resources, we believe the new Muliang can grow by leaps and bounds as we take the Viagoo platform to the Chinese logistic market.”
Corporate Name Change
On June 26, the Company is filing a Certificate of Amendment to its Articles of Incorporation with the Secretary of the State of the State of Nevada, changing its name from “Muliang Agritech, Inc.” to “Muliang Viagoo Technology Inc.”
About Viagoo Pte Ltd.
Viagoo is a Singapore-based logistics sharing platform that enables shippers and carriers to share and optimize resources to lower cost and increase efficiency. From last mile delivery to cross border transportation, the platform provides digital transaction contracts for customers to source for service providers to deliver goods and services in a convenient manner. Viagoo partners with various Singapore agencies to promote the platform to support urban logistics need in Singapore, such as Enterprise Singapore, a government agency to support Singapore small and medium businesses, and Singapore Logistics Association. More information about Viagoo can be found at: www.viagoo.co
About Muliang Agritech, Inc.
Founded in November 2014 and headquartered in Shanghai, China, Muliang primarily engages in the manufacturing and distribution of organic fertilizer and the sales of agricultural products in China. The Company’s organic fertilizer products are sold under its own brand names “Zongbao”, “Fukang”, and “Muliang”. More information about Muliang can be found at: www.cmuliang.com
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of markets the Company serves or plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the other markets the Company serves or plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly update these forward‐looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1-732-910-9692