Boqii Holding Limited (NYSEAMERICAN: BQ) shares rose 32.5% in after-hours trading on Wednesday, reaching $2.65.
Check out the current price of BQ stock here.
According to Benzinga Pro data, the stock closed on Wednesday at $2, down 4.76%.
SEC Filing Details Equity Transaction
Boqii filed a Form 6-K with the Securities and Exchange Commission on Wednesday, disclosing an equity interest repurchase agreement dated Dec. 4.
Form 6-K provides material information from foreign private issuers to U.S. investors.
Chao Guo and Zhongshu Zhai, founders of Nanjing Xingmu Biotechnology, will repurchase the 14.5% equity stake in Nanjing Xingmu Biotechnology currently held by Shanghai Guangcheng, a variable interest entity of Boqii, for RMB 12.5 million ($1.76 million) in cash installments.
Nanjing Xingmu Biotechnology is a Chinese biotech firm affiliated with Boqii Holding Limited.
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According to the SEC filing, the founders of Nanjing Xingmu will each acquire a 7.25% equity interest from Shanghai Guangcheng.
VIE Arrangements Termination Planned
As part of the repurchase, the parties expect to terminate the contractual variable interest entity (VIE) arrangements between Nanjing Xinmu Information Technology Co., Ltd., Nanjing Xingmu Biotechnology, and its shareholders, subject to conditions in the repurchase agreement.
Under current VIE arrangements, Nanjing Xinmu Information Technology consolidates Nanjing Xingmu’s operating results in Boqii’s financial statements under U.S. generally accepted accounting principles.
The repurchase agreement also includes representations, warranties, covenants, and indemnification provisions.
Trading Metrics
The stock has fallen 50.62% year-to-date.
The pet-focused platform has a market capitalization of $7.16 million and an annual trading range of $1.62 to $56.10.
Benzinga’s Edge Stock Rankings indicates BQ stock has a negative price trend across all time frames. Monitor the performance of other companies in this segment.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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