Jowell Global Ltd (JWEL)

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$JWEL Jowell Global Ltd. Announces Acquisition of Certain Equity Interests in Suzhou Industrial Park Hongrun Rural Small Amount Loan Co., Ltd.

https://www.globenewswire.com/news-release/2021/07/29/2271235/0/en/Jowell-Global-Ltd-Announces-Acquisition-of-Certain-Equity-Interests-in-Suzhou-Industrial-Park-Hongrun-Rural-Small-Amount-Loan-Co-Ltd.html

Shanghai, China, July 29, 2021 (GLOBE NEWSWIRE) -- Jowell Global Ltd. (“JWEL” or the “Company”) (NASDAQ: JWEL), one of the leading cosmetics, health, nutritional supplements, and household products e-commerce platforms in China, today announced that its variable interest entity Shanghai Juhao Information Technology Co., Ltd. (“Shanghai Juhao”) has entered into a Capital Increase Agreement to acquire 18.96% equity interest in Suzhou Industrial Park Hongrun Rural Small Amount Loan Co., Ltd. (“Hongrun Small Loan”) for an aggregate consideration of RMB30 million (approximately $4.6 million) in cash. The investment by Shanghai Juhao will be ear-marked for the loans to the owners of Juhao Best Choice Stores for their business development and expansion. Juhao Best Choice Stores are the community group-buying franchise stores launched by Shanghai Juhao in April 2021.

Hongrun Small Loan is a joint stock limited company incorporated in the People’s Republic of China. Hongrun Small Loan principally engages in the business of providing loans to “agriculture, rural areas and farmers” and financing guarantee, as well as acting as agent for financial institutions.

“We believe there are significant opportunities to further grow our business, through organic growth or acquisitions”, said Mr. Zhiwei Xu, Chief Executive Officer and Chairman of Jowell Global Ltd. “The acquisition announced today is a clear indication of the Company’s continuous capabilities in executing long-term growth strategies and evidence of continued efforts in expanding Juhao Best Choice Stores across China. This investment will be dedicated to support the development and expansion of Juhao Best Choice Stores. We believe our partnership with Hongrun Small Loan will generate new growth points and value for the Company as well as create better products, services and quality satisfactory shopping experiences for consumers of Juhao Best Choices Stores."