Cheetah Net Supply Chain Service Inc. (NASDAQ:CTNT) said Thursday it has signed a definitive agreement to purchase 100% of Super International Trading Limited, a Hong Kong-based firm focused on large-scale industrial equipment trading. The announcement was disclosed in a filing with the Securities and Exchange Commission.
Under the terms of the share purchase agreement with seller Leyan Yang, Cheetah Net will pay total cash consideration of about $4.98 million. This includes a $1.5 million refundable deposit to be paid ahead of due diligence, which will count toward the final purchase price at closing. The deal value represents roughly 79% of Cheetah Net’s current market capitalization of $6.29 million, underscoring the scale of the transaction for the company.
The acquisition is expected to be completed within three months, subject to standard closing conditions. These include board approvals from both companies, successful completion of due diligence, receipt of required regulatory clearances, and the absence of any material adverse developments affecting the target business.
Once finalized, Cheetah Net will assume only those liabilities that are recorded in Super International Trading’s financial statements as of an agreed date or specifically disclosed and accepted under the agreement.
The deal also includes performance-related provisions after closing. For the first three years, Super International Trading must generate at least $10 million in annual revenue. If this threshold is not met, the seller will be required to compensate Cheetah Net based on a predefined formula. The target represents a significant step-up for Cheetah Net, which reported $1.29 million in revenue over the past twelve months. Additionally, for five years post-closing, if annual revenue exceeds $10 million, the seller may receive additional compensation in cash or shares, as outlined in the agreement.
Cheetah Net Supply Chain Service Inc., incorporated in Delaware and headquartered in Irvine, California, trades on the Nasdaq under the ticker CTNT.
The details of the transaction are based on a press release filed with the SEC.
Separately, the company recently entered into a sales agreement with AC Sunshine Securities LLC to potentially raise up to $100 million through an at-the-market offering of its Class A common stock. Signed on March 31, the agreement allows Cheetah Net to issue shares periodically, with AC Sunshine acting as sales agent. The company is not required to sell any shares and retains control over timing, pricing, and volume, with transactions expected to take place on the Nasdaq Capital Market or through other approved channels.