China Rapid Financial Seals $8 Million Investment Deal with True North Financial

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New York-listed China Rapid Finance has seen its stock price leap following reports that True North Financial, LLC has made an USD$8 million investment in the Shanghai-based online lender.

TNF has reportedly obtained 37,985,203 Class A unregistered Ordinary shares and 3,465,574 Class B unregistered Ordinary shares in China Rapid Finance, based on the closing price of $1.93 per ADS, or 0.193% per ordinary share, on 23 December 2019.

The private transaction confers TNF with 36.63% of the total outstanding share capital of China Rapid Finance, as well as commensurate voting power.

According to a press release the two parties will endeavour to agree on registration rights for the Class A Ordinary shares within the next 30 days, while TNF has already provided China Rapid Finance with a promissory note for a consideration of $8 million.

China Rapid Finance has weathered tough times in 2019, failing to comply with the NYSE’s listing standards concerning minimum average share price and timely filing of annual reports in the first half of the year.

Its difficulties arrived amidst a crackdown on China’s scandal-plagued P2P sector by both central and local government regulators, which has since brought the number of regularly operating platforms to under 600 from a prior peak of more than 7,000.

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