Dogness Announces Operational Updates
- The Company has invested
RMB 1.5 millionout of an approved RMB 3.0 millionto acquire 13% ownership interest in third party Linsun Smart Technology Co., Ltd(“Linsun”). Linsun will share its related technologies, patents and manufacturing capabilities with Dognessafter the acquisition. Going forward, Dognessand Linsun will further develop new products and new technologies in the smart pet tech area together.
- The Company has invested
RMB 2.0 millionout of an approved RMB 8.0 millionto acquire 10% of the ownership interest in Dogness Network Technology Co., Ltd, in order to integrate the industrial chain and to further develop new products and new technologies in smart pet tech area. The remaining RMB 6.0 millioninvestment is expected before June 2019.
- The Board has approved the investment of
RMB 3.5 millionto jointly open Dogness Pet Storewith Mr. Liwen Zheng, his company Changxuan Yuandong Co., Ltd., and Mr. Shiting Deng. There are no related party relationships noted with Mr. Shiting Deng.
- In order to expand into the Japanese market and to complete the smart pet ecosystem, the Company has invested
$250,000for 51% ownership interest to establish and operate Japan Dogness Company.
- In connection with these initiatives and to incentivize the Company’s employees, the Board has granted options to purchase 1.2 million Class A Common Shares to certain management and employees at an exercise price of
$3.50per share. This grant was made pursuant to the employee incentive plan.
Forward Looking Statements
No statement made in this press release should be interpreted as an offer to purchase or sell any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Certain statements in this press release concerning the Company’s future growth prospects are forward-looking statements regarding the Company’s future business expectations intended to qualify for the “safe harbor” under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the Company’s ability to raise capital on any particular terms, fluctuations in earnings, fluctuations in foreign exchange rates, the Company’s ability to manage growth, the Company’s ability to attract and retain highly skilled professionals, client concentration, industry segment concentration, reduced demand for technology in the Company’s key focus areas, interaction between the Company’s smart products and the technology on which they rely and with which they interact, the Company’s ability to successfully complete and integrate potential acquisitions, and unauthorized use of the Company’s intellectual property and general economic conditions affecting the Company’s industry. Additional risks that could affect the Company’s future operating results are more fully described in the Company’s
Source: Dogness (International) Corporation