Kiwa Bio-Tech Products Group Corp (fka KWBT)

[hugh_jackoman]

from 8K filing on 7/2/2018.

https://www.sec.gov/Archives/edgar/data/1159275/000149315218009524/form8-k.htm

Item 1.01 Entry into a Material Definitive Agreement.

Starting in March 2018, the Company began to use a supply chain financing model, pursuant to which the Company’s customers engage with third party financing companies to advance funding on their behalf for the purchase of Company products, without recourse to the Company. In effect, the Company’s customers are required to purchase an insurance product to cover the risk of bad weather or any other reason which they are not able to harvest crops and to realize profits which could affect the customer’s ability to pay after harvesting crops. From the Company’s standpoint, it guarantees the fulfillment of the purchase agreement with the customer. By utilizing this facility, the Company achieves collection on these sales sooner than the prior 3 to 9 months payment scheme.

On June 21, 2018, Shandong Ronghua Bio-Tech Co., Ltd. entered into a Purchase Agreement with Huinong Wanjia Hebei Agricultural Technology Service Co., Ltd, wherein the purchaser agreed to purchase 5,000 units of Kiwa Bio-Tech Products Group Corporation’s Bio-Organic fertilizer at the unit price of US$114.33 dollars (RMB 740.00), for an aggregate purchase amount of US$571,667 dollars (RMB 3,700,000) utilizing the supply chain financing model. This arrangement was supported by the Company’s guarantee that the supplier would fulfill all terms specified in the purchase agreement.

Item 9.01 Financial Statements and Exhibits.