Fuwei Shareholder Receives Partial Waiver Regarding Lock-up

Rhea-AI Summary

Fuwei Films (Nasdaq: FFHL) announced on October 6, 2022, that BaiJiaYun Limited has exempted Apex Glory Holdings Limited from restrictions concerning the disposal of certain equity securities held in Fuwei Films, negating aspects of a Lock-up Agreement dated July 18, 2022. This waiver pertains to 605,147 ordinary shares recognized as Exempted Securities. Fuwei Films specializes in manufacturing and distributing BOPET plastic films, which are utilized across various sectors including packaging for food, medicine, and electronics.

Positive

• Exemption of 605,147 ordinary shares from lock-up limitations may enhance liquidity for shareholders.

Negative

• Impact of Apex's disposal on share price and market perception is uncertain.

BEIJING, Oct. 7, 2022 /PRNewswire/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that BaiJiaYun Limited ("BaiJiaYun") entered into a letter with Apex Glory Holdings Limited ("Apex") on October 6, 2022 (the "Letter"), exempting Apex from limitations on disposition with respect to certain equity securities held by it in Fuwei Films as set forth in the lock-up agreement (the "Lock-up Agreement") dated July 18, 2022 entered into by and between BaiJiaYun and Apex.

As disclosed in the Schedule 13D/A filed on July 19, 2022 and the proxy statement filed on August 22, 2022, the Lock-up Agreement provides that any equity securities held by Apex in Fuwei Films as of July 18, 2022 (together with any securities paid as dividends or distributions with respect to such securities or into which such securities are exchanged or converted) shall be subject to limitations on disposition as set forth in the Lock-Up Agreement (the "Limitations"). By entry into of the Letter, a total number of 605,147 ordinary shares of Fuwei Films held by Apex (the "Exempted Securities") shall be exempted from the Limitations.

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.

 

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SOURCE Fuwei Films

FAQ

What exemption was granted to Apex Glory Holdings Limited regarding Fuwei Films (FFHL)?

On October 6, 2022, BaiJiaYun Limited exempted Apex Glory Holdings Limited from certain restrictions on the disposal of 605,147 ordinary shares of Fuwei Films.

When was the Lock-up Agreement for Fuwei Films (FFHL) established?

The Lock-up Agreement was established on July 18, 2022.

How does the exemption affect Apex's shares in Fuwei Films (FFHL)?

The exemption allows Apex to dispose of the specified shares without being subject to the limitations set by the Lock-up Agreement.

What type of products does Fuwei Films (FFHL) manufacture?

Fuwei Films manufactures high-quality BOPET plastic films used for packaging in various industries including food, medicine, and electronics.