Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 119

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 119
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 and/or Regulation D of the Securities Act. Divesture in December 2024 On December 30, 2024, ReTo entered into the Share Sale Agreement with Zhao Duan Wen, pursuant to which the Company agreed to sell all of its shares in REIT Holdings to the buyer for a purchase price of US$80,000. REIT Holdings is the holding company of multiple indirect subsidiaries of ReTo, which were engaged in in the business of manufacture and distribution of eco-friendly construction materials, ecological restoration projects and software development services and solutions utilizing Internet of Things technologies. The board of directors of the Company approved the December 2024 Divesture based on considerations that these lines of business had experienced significant losses over the years and that the Company plans to focus on existing and new businesses that are more profitable and promising. The terms of the Share Sale Agreement, including the purchase price, were negotiated based on a valuation report of a third-party appraisal firm. Private Placement in August 2024 On August 30, 2024, ReTo entered into a securities purchase agreement with certain purchasers in connection with the issuance and sale of an aggregate of 1,409,520 Class A Shares, at $13.8 per share for an aggregate of purchase price of $19,451,376 (the “August 2024 Private Placement”). On the same day, the parties closed the private placement. As of the date of this annual report, we have used approximately $4.9 million of the proceeds from the August 2024 Private Placement. We intend to use the balance of the proceeds for future mergers and acquisitions and working capital purposes. The sale of the Class A Shares was made pursuant to the provisions of Regulation S promulgated under the Securities Act. II-2 On August 30, 2024, ReTo engaged Jaash Investment Limited, a company organized under the laws of Hong Kong, for consulting services in connection with the August 2024 Private Placement and agreed to issue 126,857 Class A Shares to Jaash Investment Limited as consideration for its services within 5 business days after the closing of the August 2024 Private Placement. These Class A Shares were issued pursuant to Section 4(a)(2) of the Securities Act on the closing date of the August 2024 Private Placement. Share Redesignation and Issuance of Class B Shares in August 2024 On August 8, 2024, as approved by ReTo’s board of directors and shareholders at the 2024 Annual