Equity financing scheme steps

Equity financing scheme steps

1. The financing fund holds the controlling shareholding of the project company (the land ownership party) by means of capital increase and share expansion: the specific equity ratio and the share price are calculated according to the actual capital demand, and usually need to hold 60-95%;

2. All the original shareholders of the project company will provide their equity to our equity pledge and go through the relevant pledge registration procedures;

3. Re-electing the company's board of directors and senior management, serving as the company's important personnel position (legal representative, financial controller), to achieve control over the company's major asset decisions, but does not interfere with the established development plan, does not set too many restrictions on the use of funds ;

4. All project company shareholders signed a written commitment: During the financing period, all assets (including land and construction in progress) under the name of the project company shall not be used for mortgage or pledge financing;

5. We will dispatch resident personnel on site to jointly manage and use the relevant licenses, official seals, and financial seals, and adopt a double-signing system. All letters and contracts signed in the name of the project company shall be signed and confirmed by both the company and the project company;

6. According to the prior sales progress, we have the right to intervene in advance for unreasonable changes in sales arrangements. If the sales price of the project is too high, it will not be sold on schedule. If the sales revenue is lower than 30% of the original sales plan or the sales revenue is lower than 20% of the original sales plan for two consecutive quarters, the sales arrangement will be adjusted immediately to ensure the smooth sales. The specific circumstances shall be subject to the agreement of both parties.

7. According to the prior agreement, if the agreed repayment risk situation occurs, we can immediately start the operation of disposing the equity or land use right of the project company without starting the judicial procedures such as litigation, execution and auction in the normal operation.

8. Once the project enters sales, the sales return can only be remitted to the designated account. In the three months before the due date of the repayment of the project, when the cash-form assets are less than a certain percentage of the principal and related expenses, we have the right to transfer some funds in advance and start the sales warning.

9. When the project expires, the actual controller arranges the entity to acquire our equity at the agreed premium, and we will withdraw. At the same time, quarterly interest can be paid in the form of service management fees.

The measures for the actual controller of the equity and the provision of auxiliary mortgage protection for other core assets are not listed here.