06:27 AM EDT, 05/16/2022 (MT Newswires) -- Hong Kong ChaoShang Group (HKG:2322) is demanding compensation from the former owners of ChaoShang Financial, a company it acquired in 2019, after the business failed to meet profit guarantee targets for the year ended December 2021.
The moneylender said it will take appropriate actions to recover the remaining balance of the second guaranteed profit compensation from the vendors in due course, according to a late Friday bourse filing.
The group agreed to buy ChaoShang Financial in 2019 from its three shareholders for HK$250 million ($32 million). The company changed its name from Noble Century Investment Holdings with the acquisition.
As part of the deal, the vendors made a guarantee that if the actual net profit of ChaoShang Financial in 2021 is below HK$25 million, they will pay cash compensation to the company.
Price (HKD): $0.92, Change: $-0.03, Percent Change: -3.16%