Eastern International Ltd. entered a securities purchase agreement with Chairman and CEO Albert Wong.
Wong will purchase 200,000 Series B Preferred Shares. The total purchase price for the securities is $200,000.
The company's Board of Directors and a special committee approved the transaction. Each preferred share grants Wong 100 votes.
The shares are convertible into ordinary shares at a later date. This move increases Wong's voting power to solidify his control over the company.
The issuance prioritizes corporate governance over capital raising. Such structures are common among foreign private issuers listed in the United States.