Sharing Economy International Inc. (NASDAQ: SEII) leaped Wednesday as the company disclosed that it has entered into a license agreement to establish ECrent website platform in North Korea.
The Hong Kong-based firm said its wholly-owned subsidiary has entered into a license agreement with Ecrent Capital Holdings Limited, 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 North Korea.
The License Agreement will be valid until December 31, 2023. In return, SEII shall pay ECRENT a maximum amount of $1,000,000 U.S. upon satisfying the condition precedent that the gross profit generated from the corresponding business arrangement in North Korea exceeds the license fee payment, which will be determined at expiration of the license agreement on December 31, 2023.
"The US-North Korea summit appears to have progressed very smoothly, which is extremely good news not only for the populations of these two countries, but for every individual around the globe," said CEO Tin Chi Chan.
"We strongly believe that the potential opening of the North Korean market provides a unique opportunity for us to develop both online and offline sharing economy business models in the region that would greatly benefit the North Korean people."
The shares traveled higher 88 cents, or 24.8%, to $4.43 as the clock approached noon ET on Wednesday
