SHANGHAI and WENZHOU,
China, July 31, 2020
/PRNewswire/ -- Hebron Technology Co., Ltd. ("Hebron" or the "Company") (Nasdaq: HEBT), a
provider of innovative comprehensive solutions through an
integration of technology, industry, and finance, today announced
the key findings and determinations made upon the conclusion of an
independent investigation conducted by White & Case LLP ("White
& Case"), which refuted certain allegations raised in a short
seller's report dated June 3,
2020.
White & Case's investigation is based on the information and
materials provided by the Company and relevant individuals.
Because of time constraints and at instructions of the Independent
Committee, White & Case did not conduct any forensic accounting
review and testing for this investigation. White & Case
has concluded based on the evidence collected and the information
provided by interviewees that none of the three transactions
specified in the short seller's report qualified as related party
transactions requiring disclosure under the applicable
standard.
Allegations regarding the private placement sale of
shares
- The short report alleges that HEBT's private placement of
shares in December 2019 was an
undisclosed related party transaction because the directors of the
two institutional investors Jupiter Trading Co., Ltd (BVI)
("Jupiter") and Loong Fang Trading Co., Ltd (BVI) ("Loong Fang") have certain connections with
HEBT's largest shareholder Bodang LIU.
- White & Case determined that there was no evidence to
substantiate the claim that the institutional investors are related
parties to Hebron. In particular,
White & Case found no evidence suggesting that Xuezhen DU or
Shan JIANG are key management personnel of Hebron, or that they are individuals who own
sufficient voting power over Hebron to exercise significant influence over
the company. Furthermore, White & Case found no evidence
suggesting that Jupiter or Loong
Fang qualified as related parties to Hebron under any of the related party
definitions applicable to corporate entities.
Allegations regarding the Beijing Hengpu transaction
- The short seller's report alleged that the acquisition of
Beijing Hengpu by Hebron was an
undisclosed related party transaction because of the alleged
connections of Xiaoyun HUANG (as the legal representative of
Beijing Hengpu) and Peng JIANG (as the director of Beijing Hengpu)
to Bodang LIU.
- White & Case determined that all of these purported
connections were either unsubstantiated or were insufficient to
establish a related party relationship. For example, White &
Case determined, based on the evidence reviewed, that Xiaoyun HUANG
left his position at Beijing Hengpu more than a year before the
acquisition and that he is only listed as the company's legal
representative in Beijing Hengpu's corporate records due to certain
government regulatory policies that have temporarily prohibited the
company from changing its registration information. It was
also determined that HUANG's 20% shareholding in Beijing Hengpu was
insufficient to qualify him as a related party given that he
contractually turned over his voting and control rights two years
before the acquisition and thus was incapable of exercising
substantial influence over Beijing Hengpu. Additionally, White
& Case found that Peng JIANG's purported connections to Beijing
Hengpu and certain companies affiliated with Bodang LIU were
insufficient to establish a related party relationship because
White & Case did not find any evidence demonstrating that JIANG
exercised control over Beijing Hengpu as a result of his nominee
director status.
Allegations regarding the Nami acquisition
- The short seller's report alleged that the acquisition of Nami
Cayman and related subsidiaries by Hebron was an undisclosed related party
transaction because a related company, Shanghai Nami Financial
Consulting Co., Ltd ("Nami Shanghai"), is an alter ego of
HuiYingJinFu ("HYJF") (which is operated by Bodang LIU's company
Benefactum Beijing).
- White & Case reviewed the various factors cited by the
short seller report and was not able to substantiate the allegation
that Nami Shanghai was an alter-ego of (or related party to)
Benefactum Beijing. For example, White & Case determined that
the 2018 WeChat article that mistakenly stated that NiSun Shanghai
and Nami Shanghai were subsidiary companies was inadvertent and
that error was quickly revised a mere six days later.
Hebron stands by its business
model, including those of its legacy business as well as its shift
towards integrating technology, industry, and finance. As the
Company continues to provide innovative comprehensive solutions for
governments, financial institutions, small and micro businesses,
and individuals in China, it
remains firmly committed to compliance, governance, and maximizing
shareholder value.
About Hebron Technology Co., Ltd.
Hebron Technology Co., Ltd. (NASDAQ: HEBT) provides innovative
comprehensive solutions for governments, financial institutions,
small and micro businesses, and individuals in China by integrating technology, industry, and
finance. Through its subsidiaries, the Company provides fintech
services, consulting services, business services, and intermediary
services to clients in a variety of industries. Its innovations
include an open fintech ecosystem for financial institutions, a
government credit system, an efficient capital liquidity system for
the agriculture sector, and financial advisory intermediary
services. Hebron's
technology-driven model deepens the link between industry and
finance, serving the real economy and capturing opportunities in
the new technology era. For more information, please visit
http://ir.xibolun.com/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains information about Hebron's view of its future expectations,
plans and prospects that constitute forward-looking statements.
Actual results may differ materially from historical results or
those indicated by these forward-looking statements as a result of
a variety of factors including, but not limited to, risks and
uncertainties associated with its ability to raise additional
funding, its ability to maintain and grow its business both in
legacy and new segments, variability of operating results, its
ability to maintain and enhance its brand, its development and
introduction of new products and services, the successful
integration of acquired companies, technologies and assets into its
portfolio of products and services, marketing and other business
development initiatives, competition in the industry, general
government regulation, economic conditions, dependence on key
personnel, the ability to attract, hire and retain personnel who
possess the technical skills and experience necessary to meet the
requirements of its clients, and its ability to protect its
intellectual property. Hebron
encourages you to review other factors that may affect its future
results in Hebron's registration
statement and in its other filings with the Securities and Exchange
Commission. Hebron assumes no
obligation to update or revise its forward-looking statements as a
result of new information, future events or otherwise.
Contacts:
Hebron Technology Co., Ltd.
Investor Relations
Shaokang (Ken) Lu
Tel: +86 (21) 2357-0055
Email: lushaokang@cnisun.com
ICR, LLC
Tel: +1 203 682 8233
Email: hebron@icrinc.com
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SOURCE Hebron Technology Co., Ltd.