E-Home Household Service Holdings Ltd. (NASDAQ: EJH) stock gained by 0.37% at the last close while the EJH stock price surged by 5.56% in the pre-market trading session. E-Home Household Service Holdings Limited is a Fuzhou-based household service provider. The company offers comprehensive household services through its website and WeChat platform.
EJH stock’ Recent Past Development
E-Home Household Service Holdings Limited revealed that E-Home Household Service Technology which is its indirectly fully owned Chinese subsidiary has exerted its options to purchase 100 percent equity interests in Fuzhou Bangchang Technology Co. Ltd. and Pingtan Comprehensive Experimental Area E Home Service. These are the Company’s two variable interest entities (VIEs), which are owned by the VIEs’ shareholders. Mr. Wenshan Xie who is the Company’s Chairman and Chief Executive Officer beneficially hold more than half of each VIE.
E-Home WFOE and Fuzhou Bangchang and Fuzhou Bangchang’s shareholders signed an important option deal on February 20, 2019. Fuzhou Bangchang’s shareholders gave E-Home WFOE or its designee(s) exclusive, irrevocable choices to acquire all or a portion of Fuzhou Bangchang’s equity interests at a principal amount of RMB 10 in the aggregate as a result of this agreement.
Furthermore,
E-Home WFOE used its purchase options on October 18, 2021, and signed into stock transfer deals with Fuzhou Bangchang, E-Home Pingtan, and their respective shareholders. Under the terms of the agreement, the shareholders decided to transfer all of their equity interests in Fuzhou Bangchang and E-Home Pingtan to E-Home WFOE. Both sides agreed that the transactions contemplated by the equity transfer agreements would close on the date on which the parties had completed the necessary PRC government registrations to put through the equity interest transfers.
Mr. Wenshan Xie, Chairman, and CEO of the Company stated,
They believe that removing the VIE structure will strengthen E-corporate Home’s governance and transparency. They’ll keep working hard to provide value to both their customers and stockholders.
