SHANGHAI, China, Aug. 03, 2020 (GLOBE NEWSWIRE) -- ECMOHO Limited ("ECMOHO" or the "Company"; Nasdaq: MOHO) announced today that it has entered into an investment agreement with Anze Premium Health and Beauty Pte. Ltd. (“Anze”), a company involved in the research and development of Chinese herbal medicine-based health and wellness products. The Company has committed to paying Anze up to US$30 million, comprising of up to US$15 million for an equity interest in Anze and up to US$15 million for zero coupon convertible notes issued by Anze.
The consideration to be paid by the Company will be payable over three installments, each payment being contingent upon the satisfaction of certain performance conditions by Anze, as set out in the transaction documents. Upon the completion of the third and final equity installment, the Company is expected to cumulatively own 29.7% of Anze’s equity capital. The convertible notes shall be repaid in installments starting in the 1st quarter of 2021 and ending in 2023. The Company has the right to convert the convertible notes into equity at predetermined valuations starting in 2021. If the Company exercises its conversion right, the notes can be maximally converted into a 20% interest in the equity capital of Anze, as set out in the transaction documents.