Cheetah Net (CTNT) Acquires 07 Trade & Services, Issues 10M Shares

TL;DR

**CTNT just bought 07 Trade & Services, but issued 10M new shares, diluting existing stock.**

AI Summary

On February 2, 2024, Cheetah Net Supply Chain Service Inc. (CTNT) completed the acquisition of 07 Trade & Services, a move that significantly expands CTNT's business operations. This acquisition was funded by issuing 10,000,000 shares of CTNT's Class A Common Stock to the seller, 07 Trade & Services. This matters to investors because it represents a strategic expansion for CTNT, potentially increasing its market share and revenue streams, but also dilutes existing shareholders due to the issuance of new stock.

Why It Matters

This acquisition expands Cheetah Net's business, potentially boosting future revenue, but the issuance of 10 million new shares will dilute the ownership stake of current shareholders.

Risk Assessment

Risk Level: medium — The acquisition itself presents integration risks, and the significant share issuance causes immediate dilution for current shareholders.

Analyst Insight

A smart investor would evaluate the strategic benefits of the 07 Trade & Services acquisition against the immediate dilution from the 10,000,000 new shares issued, potentially waiting for more clarity on integration and financial impact before making a move.

Key Numbers

• 10,000,000 — Shares Issued (Number of Class A Common Stock shares issued to acquire 07 Trade & Services, leading to shareholder dilution.)

Key Players & Entities

• Cheetah Net Supply Chain Service Inc. (company) — the acquiring company (registrant)
• 07 Trade & Services (company) — the acquired company
• 10,000,000 (dollar_amount) — number of Class A Common Stock shares issued for the acquisition
• February 2, 2024 (date) — date of the acquisition completion

Forward-Looking Statements

• CTNT's stock price will experience short-term volatility due to dilution concerns. (CTNT) — medium confidence, target: 2024-03-07
• The acquisition of 07 Trade & Services will contribute to CTNT's revenue growth in the next fiscal year. (CTNT) — medium confidence, target: 2025-01-01

FAQ

Key Financial Figures

• $300,000 — e price that included a cash payment of $300,000 and the issuance of the Corporation's u
• $1,200,000 — istered Class A common stock, valued at $1,200,000. The foregoing description is qualifi

Filing Documents

• tm245390d1_8k.htm (8-K) — 28KB
• tm245390d1_ex99-1.htm (EX-99.1) — 7KB
• image_001.jpg (GRAPHIC) — 29KB
• 0001104659-24-011410.txt ( ) — 248KB
• ctnt-20240202.xsd (EX-101.SCH) — 3KB
• ctnt-20240202_lab.xml (EX-101.LAB) — 33KB
• ctnt-20240202_pre.xml (EX-101.PRE) — 22KB
• tm245390d1_8k_htm.xml (XML) — 4KB

01. Completion of Acquisition or Disposition of Assets

Item 2.01. Completion of Acquisition or Disposition of Assets. As previously disclosed, on January 24, 2024, Cheetah Net Supply Chain Service Inc., a North Carolina corporation (the "Corporation"), entered into a stock purchase agreement (the "Agreement") with Edward Transit Express Group Inc., a California corporation ("Edward"), and Juguang Zhang, Edward's sole stockholder (the "Seller"). Pursuant to the Agreement, the Corporation agreed to acquire 100% of the equity interests in Edward from the Seller (the "Acquisition"). On January 29, 2024, the parties entered into an amendment (the "Amendment") to the Agreement. On Februar y 2, 2024, the Corporation closed the Acquisition for a total purchase price that included a cash payment of $300,000 and the issuance of the Corporation's unregistered Class A common stock, valued at $1,200,000. The foregoing description is qualified in its entirety by reference to the full text of the Agreement and the Amendement, which have been filed as Exhibits 10.1 and 10.2 to the Corporation's Current Report on Form 8-K dated January 30, 2024 and are incorporated in this Report by reference.

02 Unregistered Sales of Equity Securities

Item 3.02 Unregistered Sales of Equity Securities. The disclosure contained in Item 2.01 of this Current Report on Form 8-K is incorporated by reference in this Item 3.02.

01 Other Events

Item 8.01 Other Events. On February 7, 2024, the Corporation issued a press release to announce the closing of the Acquisition. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit 10.1 Stock Purchase Agreement dated January 24, 2024 by and among the Corporation, Edward, and the Seller (incorporated by reference to Exhibit 10.1 of the Corporation's Form 8-K (File No. 001-41761), filed on January 30, 2024) 10.2 Amendment No.1 to Stock Purchase Agreement dated January 29, 2024 by and among the Coporation, Edward, and the Seller (incorporated by reference to Exhibit 10.2 of the Corporation's Form 8-K (File No. 001-41761), filed on January 30, 2024) 99.1 Press Release dated February 7, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 7, 2024 Cheetah Net Supply Chain Service Inc. By: /s/ Huan Liu Huan Liu Chief Executive Officer, Director, and Chairman of the Board of Directors

View Full Filing

View this 8-K filing on SEC EDGAR