Examples of VIE Entities in a sentence
The Contractual Arrangements consist of the Structured Contracts which are entered into among Dehong Medical on one hand, and Tianrui Medical, the VIE Entities and the Relevant Shareholders (namely, Xx. Xxxx and Xx. Xxxxx), where appropriate, on the other hand.
As a result, we have entered into a series of agreements narrowly tailored to provide our Group with control over the VIE Entities and grant our Group the right to acquire the entire equity interest of the VIE Entities when and to the extent permitted by the PRC laws and regulations.Through the shareholdings and the Contractual Arrangements, we supervise and control the business operations of the VIE Entities and derive economic benefits from Tianrui Medical and the VIE Entities.
As disclosed in the section headed “Contractual Arrangements” in this document, the business operations of the VIE Entities constitute a business restricted to foreign investment in the PRC, therefore, we cannot directly acquire the entire equity interest in the VIE Entities.
Pursuant to the Equity Pledge Agreements, (i) the Relevant Shareholders agree to pledge all of their respective equity interests in Tianrui Medical, and (ii) Tianrui Medical agrees to pledge all of its equity interests in the VIE Entities, to Dehong Medical to secure performance of all their obligations and the obligations of the VIE Entities under the Contractual Arrangements.
If the Relevant Shareholders and Tianrui Medical receive any dividend as declared by the VIE Entities and Tianrui Medical during the term of the pledge, Dehong Medical is entitled to receive all dividends or other income arising from the pledged equity interests, if any.