CORRESP 1 filename1.htm

 

December 5, 2018

 

  Re:

Sharing Economy International Inc.
Amendment No. 3 Preliminary Proxy Statement on Schedule 14A

Filed November 16, 2018
File No. 001-34591

 

Mr. Thomas Jones

Division of Corporation Finance

Office of Electronics and Machinery

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

 

Dear Mr. Jones:

 

On behalf of Sharing Economy International Inc. (the “Company”), we have set forth below responses to the comments of the staff (the “Staff”) of the Securities and Exchange Commission contained in its letter dated November 30, 2018 with respect to Amendment No. 3 to Preliminary Proxy Statement on Schedule 14A, File No. 001-34591 (“Proxy Statement”) filed on November 16, 2018 by the Company. For your convenience, the text of the Staff’s comments is set forth below in bold, followed in each case by the Company’s responses. Please note that all references to page numbers in the responses are references to the page numbers in Amendment No. 4 to the Preliminary Proxy Statement on Schedule 14A (the “Revised Proxy Statement”), filed concurrently with the submission of this letter in response to the Staff’s comments.

 

Preliminary Proxy Statement on Schedule 14A Amended November 16, 2018

 

Approval of Amendment to Articles of Incorporation, page 11

 

1.We note your response to prior comment 2. Please tell us whether you currently intend to use the securities you are asking your shareholders to authorize for the pending transactions.

 

Response – For the “transactions in progress” listed in the table enclosed with the Company’s last response letter (BM Nine Ltd., Leung Tin Lung David and Coassets), the number of securities reserved for future issuance are set forth on page 11 of the Revised Proxy Statement. The “transactions in preliminary discussion” listed in the table enclosed with the Company’s last response letter, are in very preliminary stages -- either non-binding memorandums have been signed or in some cases only exclusivity agreements have been entered into between the parties. To date, there has been no discussion on key terms, including pricing or the form of consideration to be received by any of the target companies. Further, the Company’s common stock was recently delisted from Nasdaq. It is unclear whether any of the target companies the Company is in preliminary discussions with will accept shares listed on the OTC as consideration. The Company will need to re-engage in discussions with such parties. As such, other than the transactions listed on page 11 of the Revised Proxy Statement, the Company does not have any current plans to use the securities it is asking its shareholders to authorize to make pending acquisitions.

 

2.We note the table provided in your response to prior comment 5. Please also address the part of that comment that asked for your analysis demonstrating that you have filed disclosure regarding your securities issuances as required by Item 3.02 of Form 8-K.

 

Response – Please refer to the Form 8-K filed on December 5, 2018 with the Securities and Exchange Commission. The Company also intends to withdraw its Form S-3 filed on July 18, 2018.

  

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Should you have any questions relating to the foregoing or wish to discuss any aspect of the Company’s filing, please contact me at +852.5600.0188.

 

  Very truly yours,
   
  /s/ Lawrence S. Venick
  Lawrence S. Venick

  

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Parties Name   Documents enter into   Date of Document   Consideration   Type of Public Document   Reason of Cancellation  
Acquisitions Completed                      
Inspirit Studio   Entered into an exclusivity agreement   9-Oct-2017   Potential acquisition of not less than 51%   Press Release      
    Entered into an exclusivity agreement   10-Oct-2017       8-K      
    Entered into share and purchase agreement   27-Oct-2017       8-K & Press Release      
  Closing   8-Dec-2017   85,473 shares   8-K      
                       
3D Discovery   Entered into an exclusivity agreement   12-Oct-2017   Potential acquisition of not less than 51%   8-K & Press Release      
    Entered into share and purchase agreement   11-Dec-2017       8-K & Press Release      
    Closing   22-Jan-2018   68,610 shares   8-K      
                       
AnyWorkspace & SEIL   Entered into share and purchase agreement   19-Dec-2017       8-K & Press Release      
  Closing   30-Jan-2018   106,464 shares   8-K      

   

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Parties Name   Documents enter into   Date of Document   Consideration   Type of Public Document   Reason of Cancellation    
Acquisitions Cancelled & To Be Cancelled                        
ShenzhenXinsheng NewEnergy (“Xinsheng”)   Entered into MOU   7-Nov-2017   Cancelled   Press Release   After detail evaluated the business, it is not justisfy on return/cost ratio which caused the cancallation of the deal.   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
Shanghai HongChuan Culture Promulgation Co., Limited   Entered into an exclusivity agreement   21-Dec-2017   Cancelled   Press Release   Both parties doesn’t come into agreeable acquisition price   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
Channel Power Touch Media & EC Adv   Entered into an exclusivity agreement   4-Jan-2018   Cancelled   Press Release   Channel Power business closed during negotiation   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
Quik Ventures   Entered into an exclusivity agreement   10-Jan-2018   Cancelled   Press Release   Parties were unable to agree on price   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
iMusicTech & EC Tech   Entered into a non-binding MOU   18-Jan-2018   Cancelled   Press Release   Discontinued business   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
JoGeep   Entered into an exclusivity agreement   29-Jan-2018   Cancelled   Press Release   JoGeep owner did not provide financial information   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
Weiying Mtel & EC Tech   Entered into an exclusivity agreement   27-Feb-2018   Cancelled   Press Release   Target company shareholders decided not to sell the business   8K Filied - https://www.sec.gov/Archives/edgar/data/819926/ 000121390018014064/f8k101718_sharingeconomy.htm
                         
Marvel Finance   Entered into a conditional share swap agreement   22-Nov-2017   Cancelled   8-K & Press Release        
    Entered into a definitive agreement to confirm lapse of the conditional share swap agreement on February 28, 2018   2-Mar-2018   Cancelled   8-K   8-K filed announcing termination https://www.sec.gov/Archives/edgar/data/819926/ 000121390018003997/f8k033118_sharingeconomy.htm    

  

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Parties Name   Documents enter into   Date of Document   Consideration   Type of Public Document   Reason of Cancellation    
Ever-Long Holdings, Brighten   Entered into conditional share swap agreement   6-Dec-2017   51% of brighten issued shares (5-year interest-free promissory note with a principal amount of US$13,762,125 to Brighten)   8-K & Press Release        
    Share swap terminated   3-Apr-2018   Cancelled   8-K   8-K filed announcing terminaton https://www.sec.gov/Archives/edgar/data/819926/ 000121390018003997/f8k033118_sharingeconomy.htm    
                         
Winse Media   Entered into Exclusivity Agreement & Non-Disclosure Agreement   8-Mar-2018   In preliminary discussion only   Press Release   The parties could not agree on the key terms including the pricing and will not proceed further.  A Form 8-K will be filed.    
                         
Ecoin Development Ltd   Letter of Intent   7-Sep-2017   Engaged in exclusive discussion regarding (a) a potential acquisition by SEII of not less than 51% of the issued share capital of Ecoin Development and/or (b) business cooperation arrangements between SEII and Ecoin Development.   8-K & Press Release   The exclusive period lapsed in March 2018. Both parties have elected not to proceed further.  A Form 8-K will be filed.    
                         
Golden Value Finance Limited   Entered into a provisional agreement for purchase and sale of the entire issued share capital of Future Ocean Limited   22-Jun-2018   EC Assets agreed to purchase Future Ocean Limited for HKD96 million. There is no guarantee that the transaction will be consummated.   8-K   Due to difficulty in obtaining financing for the acquisition, EC Assets will novate the rights and obligations under the provisional agreement.  Once the novation agreement is signed, a Form 8-K will be filed.    

  

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Parties Name   Documents enter into   Date of Document   Consideration   Type of Public Document   Reason of Cancellation  
Transactions in Progress                      
BM Nine Ltd (CoAssets)   Entered into a letter agreement   23-Jan-2018   535,584 shares of common stock   8-K      
                       
Leung Tin Lung David   Entered into a sale and purchase agreement   20-Aug-2018   1,176,087 preferred shares   Press Release & 8-K      
                       
CoAssets (CAI) & EC Tech   Services Agreement   10-Sep-2018   330,650 shares of common stock   8-K      
                       
Transactions in Preliminary Discussion                      
ECrent Capital Holdings & CLNT   Entered into an exclusivity discussion   12-Jun-2017   In preliminary discussion only   Press Release      
    Entered into an exclusivity agreement   15-Jun-2017   In preliminary discussion only   8-K      
    Amendment No. 1 to exclusivity agreeent   13-Sep-2017   In preliminary discussion only   8-K & Press Release      
    Amendment No. 2 to exclusivity agreement   24-Jan-2018   In preliminary discussion only   8-K      
    Amendment No. 3 to exclusivity agreement   21-Jun-2018   In preliminary discussion only   8-K      
                       
Pandoodle   Entered into an exclusivity agreement   8-Feb-2018   In preliminary discussion only   Press Release      
                       
Icon Property Limited   Entered into MOU regarding potential acquisition of Qliq Damansara Hotel   14-Mar-2018   In preliminary discussion only   Press Release      
                       
Oob Media HK   Entered into an exclusivity agreement   10-May-2018   In preliminary discussion only   Press Release      
    Entered into another exclusivity agreement to extend the exclusivity period   26-Jun-2018   In preliminary discussion only   Press Release      
                       
Jidam   Entered into exclusivity agreement   29-Jun-2018   In preliminary discussion only   Press Release      

  

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Sharing Economy International Inc.
             
No. of shares as at December 31, 2016     1,415,441     Form 10-K filed on April 11, 2018 (see page F-2)

 

Name of person or entity   No. of Shares     Share issued date
(YYYY-MM-DD)		   Title of security sold   Consideration for the securities sold   33 Act   Date of Form 8-K filed
(YYYY-MM-DD)		   Date of Form 10-K /
10-Q filed
Ecdine Company Limited     65,000     2017-06-14   Common stock   Cash   Reg S   2017-06-20   Form 10-K filed on April 11, 2018 (see page F-31)
EOS Holdings LLC     160,000     2017-06-14   Common stock   Cash   Reg D   2017-06-20   Form 10-K filed on April 11, 2018 (see page F-31)
Glory Coast Investments Limited     65,000     2017-06-20   Common stock   Cash   Reg S   2017-06-20   Form 10-K filed on April 11, 2018 (see page F-31)
Tam Lok Man     85,473     2017-12-22   Common stock   M&A - 51% of Inspirt Studio Limited   Reg S   2017-10-27 & 2017-12-08   Form 10-K filed on April 11, 2018 (see page F-31)
Consultants and Vendors     736,806     from 2017-05-12 to 2017-11-15   Common stock   Services           Form 10-K filed on April 11, 2018 (see page from F-26 to F-29)
No. of shares as at
December 31, 2017		     2,527,720     Form 10-K filed on April 11, 2018 (see page F-2)
                                 
Chong Ou Holdings Group Company Limited     200,100     2018-01-10   Common stock (Convertible note)   Repayment of convertible note and interest   Reg S   2017-10-11   Form 10-Q filed on May 14, 2018 (see page 20)
Ho Lok Shan     22,870     2018-02-08   Common stock   M&A - 20% of 3D Discovery Company Limited   Reg S   2017-12-11 & 2018-01-22   Form 10-Q filed on May 14, 2018 (see page 20)
Cheung Chik Ting     22,870     2018-02-08   Common stock   M&A - 20% of 3D Discovery Company Limited   Reg S   2017-12-11 & 2018-01-22   Form 10-Q filed on May 14, 2018 (see page 20)
So Wang Chun     22,870     2018-02-08   Common stock   M&A - 20% of 3D Discovery Company Limited   Reg S   2017-12-11 & 2018-01-22   Form 10-Q filed on May 14, 2018 (see page 20)
Sunshine Builder Ltd     66,540     2018-02-08   Common stock   M&A - 50% of Anyworkspace Limited   Reg S   2017-12-19 & 2018-01-30   Form 10-Q filed on May 14, 2018 (see page 21)
Sng Kheng Sim     19,962     2018-02-08   Common stock   M&A - 15% of Anyworkspace Limited   Reg S   2017-12-19 & 2018-01-30   Form 10-Q filed on May 14, 2018 (see page 21)
Martin Craig John     19,962     2018-02-08   Common stock   M&A - 15% of Anyworkspace Limited   Reg S   2017-12-19 & 2018-01-30   Form 10-Q filed on May 14, 2018 (see page 21)
Chi Hung Leung     69,676     2018-03-16   Common stock   Cash   Reg S   2018-02-27   Form 10-Q filed on May 14, 2018 (see page 20)
Employees, Consultants and Vendors     1,473,139     from 2018-01-02 to 2018-03-27   Common stock   Services           Form 10-Q filed on May 14, 2018 (see page 20)
No. of shares as at
March 31, 2018		     4,445,709     Form 10-K filed on May 14, 2018 (see page 1)

  

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Ecrent Capital Holdings Limited     250,000     2018-06-26   Common stock   License of Ecrent   Reg S   2018-05-08, 2018-05-24 & 2018-06-29   Form 10-Q filed on August 10, 2018 (see page 20)
Employees, Consultants and Vendors     1,342,082     from 2018-05-09 to 2018-06-20   Common stock   Services           6 month cumulative - Form 10-Q filed on August 10, 2018 (see page 19)
No. of shares as at
June 30, 2018		     6,037,791     Form 10-Q filed on August 10, 2018 (see page 1)
                                 
Ng Hong Mun Educational Foundation Limited     58,000     2018-07-10   Common stock   Donation   Reg S   -   Form 10-Q filed on November 13, 2018 (see page 27)
Winmex Investments Limited     311,357     2018-07-24   Common stock   Tenancy - Rent & Mgt Fee   Reg S   2018-07-02   Form 10-Q filed on November 13, 2018 (see page 27)
Winmex Investments Limited     54,777     2018-07-24   Common stock   Tenancy - Rental deposit   Reg S   2018-07-02   Form 10-Q filed on November 13, 2018 (see page 27)
Employees, Consultants and Vendors     1,039,379     from 2018-07-09 to 2018-08-24   Common stock   Services           9 month cumulative - Form 10-Q filed on November 13, 2018 (see page 25)
No. of shares as at
September 30, 2018		     7,501,304     Form 10-Q filed on November 13, 2018 (see page 1)
                                 
Iliad Research and Trading, L.P.     36,621     2018-11-08   Common stock (Convertible note and Warrant)   Repayment of convertible note and interest   Reg D   2018-05-04   Form 10-Q filed on November 13, 2018 (see page 31)
No. of shares as at
November 13, 2018		     7,537,925     Form 10-Q filed on November 13, 2018 (see cover page)

   

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