Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 3

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 3
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 also may be subject to manner of sale provisions and notice requirements and to the availability of current public information
about our Company. Any substantial sale of common stock pursuant to any resale registration statement or Rule 144 may have an adverse
effect on the market price of our common stock by creating an excessive supply.

Because
we were a shell company with no operations prior to the close of the 2018 Share Exchange, sales of our shares were required to be compliant
with Rule 144(i). Pursuant to Rule 144(i), none of our shares of common stock could be sold under Rule 144 until March 2019, which was
12 months after we filed the current report on Form 8-K reporting the closing of the 2018 Share Exchange. Additionally, stockholders
could not sell our shares pursuant to Rule 144 unless, at the time of the sale, we had filed with the SEC all reports, other than reports
on Form 8-K, required under the Exchange Act for the preceding 12 months.

Recent
Sales of Unregistered Securities

Information
regarding any equity securities we have sold within the past three years that were not registered under the Securities Act of 1933, as
amended (the “Securities Act”), is set forth below. Each such transaction was exempt from the registration requirements of
the Securities Act by virtue of the provisions of Regulation S (“Regulation S”), which was adopted by the Securities and
Exchange Commission (the “SEC”) under the Securities Act. Unless stated otherwise: (i) the securities were offered and sold
only to non-US Persons, as defined in Regulation S.

On
May 17, 2021, we entered into a share exchange agreement (“Share Exchange Agreement”) with (i) KP International Holding,
a limited liability company incorporated in the British Virgin Islands on April 20, 2021; and (ii) the five members of KP
International Holding to acquire all the issued and capital stock of KP International Holding in exchange for the issuance to those
members of an aggregate of 34,158,391 shares of our common stock (“Reverse Acquisition”). Pursuant to the terms of the
Exchange Agreement, and as a condition to the completion of the transactions contemplated by the Share Exchange Agreement, the
Company also agreed to enter into an agreement with Wenhai Xia (“the Stockholder”), to cancel an aggregate of 15,535,309
shares of the Company’s common stock owned by the Stockholder. The Reverse Acquisition was closed