On June 28, 2020, XT Energy Group, Inc. through its variable interest entity, Xianning Xiangtian Energy Holding Group Co., Ltd. (“Xianning Xiangtian”), entered into two equity transfer agreements with two individuals to sell one hundred percent of the equity held by Xianning Xiangtian in its subsidiary Hubei Jinli Hydraulic Co., Ltd. (“Hubei Jinli”) to two separate individuals for an aggregate purchase price of One Hundred Fifty Million Yuan (RMB).
Pursuant to the terms of the first equity transfer agreement, Xianning Xiangtian agreed to sell Sixty Percent (60%) of its equity interests in Hubei Jinli to Zhang Xubin for a purchase price of Ninety Million Yuan (RMB), payable as follows: Twenty Seven Million Yuan (RMB) payable within Thirty (30) days after the execution of the equity transfer agreement, Twenty Seven Million Yuan (RMB) payable upon equity interests being transferred to the buyer, and Thirty Six Million Yuan (RMB) within three months after the execution of the equity transfer agreement. Pursuant to the terms of the second equity transfer agreement, Xianning Xiangtian agreed to sell Forty Percent (40%) of its equity interests in Hubei Jinli to Zheng Jian for an aggregate purchase price of Sixty Million Yuan (RMB), payable as follows: Eighteen Million Yuan (RMB) payable within Thirty (30) days after the execution of the equity transfer agreement, Eighteen Million Yuan (RMB) payable within Sixty (60) days of the equity interests being transferred to the buyer, and Twenty Four Million Yuan (RMB)within three months after the execution of the equity transfer agreement.
