True North Financial invests $8 Million in China Rapid Finance
China Rapid Finance Limited , one of China’s leading Fintech companies, announced that True North Financial, LLC(“TNF”) will invest $8M in a private transaction for unregistered shares of the company’s stock.
On December 24, 2019, TNF purchased 37,985,203 Class A unregistered Ordinary shares, and 3,465,574 Class B unregistered Ordinary shares, based on the closing price on December 23, 2019, which was $1.93 per ADS (or $0.193 per ordinary share). The Class B ordinary shares are entitled to 10 votes per share. As a result of this transaction, TNF owns 36.63% of the total outstanding share capital of the Company and 36.63% of total voting power of the Company. The Company has not yet granted TNF any rights to require the Company to register these private equity securities. The definitive agreement provides that over the next 30 days the Company and TNF will endeavor to agree, on terms to be acceptable to both parties, to registration rights with respect to the Class A Ordinary shares.
As consideration for the share purchase, TNF delivered to the Company a Promissory Note in the amount of $8.0 million, that is payable in full on January 13, 2020.
Also, as part of the transaction, TNF was granted the right to designate up to 2 qualified directors to the Board, subject to ratification by the shareholders.
We are excited about True North Financial’s commitment to China Rapid Finance as it continues its transition into the new business model.
China Rapid Finance Limited is one of China’s leading Fintech companies that offers award-winning decisioning technology and marketing services that addresses China’s growing consumer credit market. The Company utilizes its proprietary technology and 18 years of experience to provide its services.