Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 827

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1B
Chunk 827
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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 on May 17, 2021. None of the
KP International Holding stockholders was a U.S. Person (as that term is defined in Regulation S of the Securities Act of 1933) and
KP International Holding acquired our shares in the Reverse Merger outside of the United States.

In
issuing these securities to KP International Holding’s stockholders, we relied upon the exemption from the registration requirements
of the Securities Act provided by Section 4(a)(2) of the Securities Act, which exempts transactions by an issuer not involving any
public offering, and/or Regulation S promulgated by the SEC. Among other things, the offer or sale was made in an offshore
transaction and no directed selling efforts were made in the United States by the issuer, a distributor, any of their respective
affiliates, or any person acting on behalf of any of the foregoing. In addition, each of the recipients of the shares certified that
he/she/it was not a U.S. Person, as defined in Regulation S, and was not acquiring the securities for the account or benefit of any
U.S. Person, agreed to resell such securities only in accordance with the provisions of Regulation S, pursuant to registration under
the Securities Act, or pursuant to an available exemption from registration, and agreed not to engage in hedging transactions with
regard to such securities unless in compliance with the Securities Act.

78

ITEM
6. RESERVED

ITEM
7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview
of the Business

Due
to global health issues and the COVID-19 pandemic, people have increased their health and nutrition consciousness. We believe preventive