Sharing Economy International Inc. (NASDAQ: SEII) jumped in Tuesday trading after the company disclosed that it entered into a license agreement with Ecrent Capital Holdings Limited.
The Hong Kong-based Sharing Economy said its wholly-owned subsidiary, Sharing Economy Investment Limited, has entered into a License Agreement with Ecrent regarding the grant of an exclusive and sublicensable license from Ecrent to SEII to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in Taiwan, Thailand, India, Indonesia, Singapore, Malaysia, the Philippines, Vietnam, Cambodia, Japan, and Korea.
In return, SEII shall issue to Ecrent 530,000 shares of common stock. Ecrent will guarantee that the operation of its related websites, mobile applications and business services will contribute revenue of $15,000,000 U.S. and gross profit of $2,910,000 U.S. from the closing date until December 31, 2019.
SEII Vice-President Parkson Yip said, "We are very happy to have structured this 'win-win' cooperative agreement, which enables both of us to utilize the counterparties' competitive advantages to further develop our own business. Being a leading global rental classified ad platform, Ecrent is becoming the central repository for rental and service opportunities in the global market."
Sharing Economy International designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry.
The Company's latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models.
Sharing shares (pardon the pun) acquired 79 cents, or 21.4%, to $4.48.
