Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 35

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 35
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quisition and Related Party Transaction

On
May 6, 2024, we entered into a Share Purchase Agreement with certain persons named therein (the “ Share Purchase Agreement”)
for the acquisition of all outstanding shares of Fortress Cove Limited (“ Fortress Cove”), a British Virgin Islands company
which is the sole legal and beneficial owner of the entire share capital of CK Health Plus Sdn Bhd, a Malaysian company (“ CK Health”)
in the direct sale business of holistic wellness consumer products in Malaysia. Pursuant to the Share Purchase Agreement, we have agreed
to acquire the entire issued capital of Fortress Cove for an aggregate consideration of 10,000,000 newly issued ordinary shares, valued
at approximately $15.0 million based upon the enterprise fair value of CK Health appraised by an independent third-party valuation firm.
An additional one million ordinary shares will be issued to the persons named in the Share Purchase Agreement if certain financial performance
milestones based on CK Health’s net income for the fiscal years 2024 and 2025 are met. The acquisition closed on May 8, 2024. Meng
Dong (James) Tan, a significant shareholder of EUDA is also a 40% shareholder of Fortress Cove Limited. For the fiscal year ended December
31, 2024, revenue generated from CK Health accounted for approximately 2.1% of our total revenue.

  23  

Principal
Factors Affecting Our Financial Performance

Retention
of Key Management Team Members

Another
key differentiating factor for us is the rich blended nature of our management team. Our management team comprises executives with extensive
experience in the property management segments. The wide array of industries captured by our management team allows us to deliver superior
products and services to our customers as the management team possesses an in-depth understanding of the pain points prevalent in the
industry. The combination has also enabled us to address the market gap in the property management industry. However, the loss of any
of our key executive team member might affect our quality of services clients are currently receiving and might lead to our clients to
seek service from other property management providers.

Key
Personnel Discharge of their Duties

If
for any reason, one or more of our employees are unable to discharge their duties properly or in the best interest of us in the property
management sector, that may have an adverse impact on our reputation and our brand and our attractiveness to retain our shopping malls,
business office buildings, or residential apartments clients. We may as result potentially