Item 2.01 Completion of Acquisition or Disposition of Assets.
Closing of Share Exchange with HWGG Capital
On November 15, 2022, HWGC Holdings Limited, a Nevada corporation (the
"Company"), consummated the share exchange transaction (the "Share Exchange")
contemplated by the Share Exchange Agreement, dated July 21, 2022 (the "Share
Exchange Agreement"), by and among the Company, HWGG Capital P.L.C., a Labuan
company ("HWGG Capital"), and all of the shareholders of HWGG Capital (the "HWGG
Shareholders"). Pursuant to the terms and provisions of the Share Exchange
Agreement, effective as of the closing (the "Effective Time"), the Company
acquired all of the issued and outstanding ordinary shares of HWGG Capital (the
"HWGG Shares") from the HWGG Shareholders in exchange for an aggregate of
91,666,667 shares of common stock of the Company (the "Exchange Shares"), with
each HWGG Shareholder receiving a pro rata portion of the Exchange Shares based
upon the total number of HWGG Shares held by such HWGG Shareholder immediately
prior to the Effective Time. As a result of the Share Exchange, HWGG Capital
became a wholly owned subsidiary of the Company. See the Current Report on Form
8-K filed by the Company with the Securities and Exchange Commission (the
"Commission") on July 25, 2022, with respect to the execution and delivery of
the Share Exchange Agreement.
HWGG Capital and the HWGG Shareholders signed a waiver with the Company (the
"Waiver Letter") agreeing to waive the closing condition provided for in the
Share Exchange Agreement that required a registration statement on Form S-4
relating to the registration of the Exchange Shares to be declared effective by
the Commission prior to closing the Share Exchange. Pursuant to the Waiver
Letter, the parties to the Share Exchange Agreement agreed that the waiver would
be made effective as of the Effective Time.
The foregoing description of the Waiver Letter does not purport to be complete
and is subject to, and qualified in its entirety by, the full text of the Waiver
Letter, which is attached to this Current Report on Form 8-K (this "Report") as
Exhibit 10.23 and is incorporated herein by reference.
Labuan Financial Services Authority Approval
On November 11, 2022, the Company and HWGG Capital received regulatory approval
("FSA Approval") from the Labuan Financial Services Authority ("FSA") to proceed
with the Share Exchange, subject to certain conditions. Pursuant to the terms of
the FSA Approval, among other things, the Company must eliminate its accumulated
stockholder equity deficit within twelve months from the date of the approval
letter and dispose of unprofitable subsidiaries after the closing of the Share
Exchange.
The FSA Approval also requires that Mr. Lim Chun Hoo remain the majority or
substantial shareholder of the Company and requires Mr. Lim to submit a letter
of guarantee to the FSA (the "Letter of Guarantee") pursuant to which he agrees
to guarantee, on first demand, the financial obligations and requirements
imposed on the Company with respect to its Labuan Money Brokering License,
Credit Token License and Payment Operator License. The Letter of Guarantee must
also provide that prior written approval is obtained from the FSA prior to any
change in a 10% shareholder of HWGG Capital, any appointment of a HWGG Capital
director and officer, and any amendment to any of HWGG Capital's constituent
documents.
Item 3.02 Unregistered Sales of Equity Securities.
The information set forth in Item 2.01 above is incorporated herein by
reference.
On November 15, 2022, pursuant to the terms of the Share Exchange Agreement, all
of the HWGG Shares were exchanged for an aggregate of 91,666,667 shares of
common stock of the Company. This transaction was exempt from registration under
Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act")
and/or Regulation S promulgated thereunder, as not involving any public
offering. None of the securities were sold through an underwriter and,
accordingly, there were no underwriting discounts or commissions involved. At
the time of their issuance, the 91,666,667 Exchange Shares were deemed to be
restricted securities for the purpose of the Securities Act and will bear
restrictive legends to that effect.
As a result of this Share Exchange, the HWGG Shareholders own approximately
97.5% of the Company, with Mr. Lim owning 51,922,257 shares, representing
approximately 53.5% of the issued and outstanding shares of common stock of the
Company.
Item 5.01 Changes in Control of Registrant.
As a result of the consummation of the transactions contemplated under the Share
Exchange Agreement, a change in control of the Company has occurred with the
Shareholders now owning approximately 97.5% of the issued and outstanding shares
of common stock of the Company.
The information set forth in the Item 2.01 and Item 3.02 of this Current Report
on Form 8-K is incorporated by reference into this Item 5.01.
As previously disclosed in the Current Report on Form 8-K filed August 11, 2022,
the Company has entered into a share exchange agreement with Fintech Scion
Limited, a private limited company incorporated in the United Kingdom and all of
its shareholders. If the transactions contemplated pursuant to such share
exchange agreement are consummated a change of control of the Company will occur
after taking into account the issuance of shares to HWGG Capital.
Item 9.01. Financial Statements and Exhibits
(a) Financial Statements of Businesses Acquired.
The Company intends to file the financial statements required by Item 9.01(a)
as part of an amendment to this Report no later than 71 calendar days after
the required filing date for this Report.
(b) Pro Forma Financial Information.
The Company intends to file the pro forma financial information required by
Item 9.01(b) as part of an amendment to this Report no later than 71 days
after the required filing date for this Report.
(d) Exhibits
Exhibit No. Description
10.23 Waiver Letter, dated November 15, 2022, by and among HWGC Holdings
Limited, HWGG Capital P.L.C., and the shareholders of HWGG Capital
P.L.C.
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