East Stone Acquisition said that its sponsor, Double Venture Holdings Limited, has requested that the SPAc extend the deadline for completing its merger with JHD Holdings from May 24 to Aug. 24.
The extension is the first of up to two three-month extensions permitted under East Stone’s governing documents, according to the SPAC’s latest 8-K filing.
In return, the sponsor agreed to deposit $1.38 million into East Stone’s trust account by the original deadline date.
JHD Holdings is a merchant enablement platform serving lower-tier cities in China.
Merger terms call for $1 billion in stock to be issued to the selling parties.
At the time of the deal’s announcement in February, JHD agreed to loan $1.38 million to East Stone on the sponsor’s behalf in order to support the extension. The loan is non-interest bearing and payable upon the completion of the proposed merger. The transaction is expected to close by the end of the third quarter, subject to regulatory and shareholder approvals.
JHD’s platform provides almost 90,000 independent retailers in five provinces with a suite of services and technologies, including Point-of-Sale (POS), supply chain and logistics, and fintech/payment capability. Read more.
