In a significant move within the insurance and technology sectors, AIX Inc. (formerly known as Fanhua Inc. and CNinsure Inc.), an insurance brokerage firm, has finalized a share exchange transaction with BGM Group Ltd. (NASDAQ:BGM), currently valued at $242 million.
Trading at $8.90 per share, BGM has demonstrated remarkable momentum with a 168% surge over the past six months. The completion of this deal was reported today by AIX Inc. in a filing with the Securities and Exchange Commission (SEC).
On November 27, 2024, AIX Inc., through its wholly-owned subsidiary CISG Holdings Ltd., entered into an agreement with BGM Group Ltd. Under the terms of the agreement, CISG Holdings transferred its equity interests in RONS Intelligent Technology (Beijing) Co., Ltd., Shenzhen Xinbao Investment Management Co., Ltd., and its subsidiaries to BGM.
In return, AIX Inc. received 69,995,661 Class A ordinary shares of BGM, which represents approximately 72% of BGM's total issued and outstanding ordinary shares and 3.4% of the aggregate voting power. The transaction was valued at around US$140 million. According to InvestingPro data, BGM maintains a strong liquidity position with a current ratio of 7.05, indicating robust short-term financial health.
The completion of the transaction, which took place on December 27, 2024, signifies AIX Inc.'s substantial ownership in BGM, positioning the company to leverage BGM's extensive resources in the global healthcare sector. This strategic move is expected to accelerate the development and innovation of the intelligent insurance platform previously managed by AIX Inc.
InvestingPro analysis reveals that BGM holds more cash than debt on its balance sheet, though investors should note its current overvaluation based on InvestingPro's Fair Value calculations. Subscribers can access 10+ additional ProTips and comprehensive financial metrics for deeper analysis.
As part of the transaction, Mr. Jun Li, who served as the chief digital officer of AIX Inc., will continue his role as General Manager at RONS Technology and has stepped down from his position at AIX.
The details of the agreement were made public through the SEC filing by AIX Inc. on November 29, 2024, and can be found in Exhibit 99.1 of Form 6-K. The announcement today confirms the successful completion of the share exchange, marking a new chapter for both AIX Inc. and BGM Group Ltd. in their respective industries.
In other recent news, BGM Group Ltd, a pharmaceutical enterprise, made headlines with its latest share subscription agreements with Ahanzhai Development Co., Ltd and LX Management Company Limited. These agreements, which will result in the issuance of 20 million Class B ordinary shares, are projected to generate total proceeds of about $1 million.
Following the issuance, Ahanzhai Development and LX Management will respectively hold 38.8% and 36% stakes in BGM Group. Notably, Class B shares carry superior voting rights and can be converted into Class A shares under specific conditions. This development is part of BGM Group's strategy to broaden its shareholder base and secure additional funding.
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