Marvion Inc. Settles $3.95M Subsidiary Debt Through Share Issuance
Rhea-AI Summary
Marvion (OTCQB: MVNC) announced a settlement converting HKD 3,950,000 of subsidiary engineering and construction debt into equity on Jan 26, 2026. Under a Settlement and Share Issuance Agreement with STAR Warehouse Engineering Limited, the company will issue 15,816,576 common shares at $0.0321 per share, a price based on the seven-day average closing price prior to the effective date. The Board approved the arrangement on Dec 30, 2025. The company says the share issuance will strengthen the balance sheet, preserve cash for operations and growth, and align stakeholder interests while supporting expansion of integrated logistics, warehousing, and supply chain services across Hong Kong and Asia Pacific.
Positive
- Converted HKD 3,950,000 subsidiary debt into equity, reducing liabilities
- Issued 15,816,576 shares at $0.0321 to preserve cash for operations
- Board-approved settlement (approved Dec 30, 2025) indicating governance support
Negative
- Share issuance of 15,816,576 common shares may dilute existing shareholders
News Market Reaction
On the day this news was published, MVNC gained 27.67%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Strengthens Capital Structure to Support Growth Initiatives
Under the agreement, approved by the Company's Board of Directors on December 30, 2025, Marvion will issue 15,816,576 shares of its common stock at a price of
Strategic Significance of the Arrangement
This equity settlement represents multiple strategic benefits for the Company:
Balance Sheet Enhancement
— Converting liabilities to equity helps to reduce debt obligations and strengthen the Company's capital structure, improving financial flexibility.
Preservation of Cash Resources
— The Company retains cash for ongoing operations and growth initiatives by settling the liability in shares rather than cash.
Alignment of Stakeholder Interests
— Equity consideration underscores the mutual confidence between Marvion and its creditor, reducing immediate cash outflows.
Board Approval and Support
— The arrangement received full approval from the Marvion Board of Directors, reflecting strong governance and strategic alignment.
Outlook and Growth Commitment
Marvion continues to focus on expanding its integrated logistics, warehousing, and supply chain services across
About Marvion
Mavion Inc. (OTCQB: MVNC) is a group provides logistics and warehousing services in the
Website: http://www.unitedksk.com
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SOURCE Marvion Inc.