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Sharing Economy International climbs on license agreement with Ecrent Capital Holdings

Last updated: 10:39 08 May 2018 EDT, First published: 10:13 08 May 2018 EDT

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Ecrent will receive Sharing Economy common stock under the arrangement

Sharing Economy International Inc. shares jumped after the company announced that its Sharing Economy Investment Limited subsidiary has entered into a license agreement with Ecrent Capital Holdings Limited that grants Sharing Economy what it called "an exclusive and sublicensable license" to use certain software and trademarks in order to develop an online platform in Taiwan, Thailand, India, Indonesia, Singapore, Malaysia, the Philippines, Vietnam, Cambodia, Japan, and Korea.

In return, Sharing Economy International said it will issue 530,000 shares of common stock to Ecrent. Sharing Economy said Ecrent will guarantee that the operation of its related websites, mobile applications and business services will contribute revenue of US$15mln and gross profit of US$2.9mln from the closing date until 31 December 2019.

Shares of Sharing Economy International were up around 14% in mid-morning trading, at US$4.20 a share.

"I believe this is the perfect way to start working with Ecrent in pursuit of our common goal of proliferating the sharing economy business," said Parkson Yip, Sharing Economy vice president.

"We are very happy to have structured this 'win-win' cooperative agreement, which enables both of us to utilize the counterparties' competitive advantages to further develop our own business," Yip said. "Being a leading global rental classified ad platform, Ecrent is becoming the central repository for rental and service opportunities in the global market. Ecrent represents a true sharing model, where people can share and rent items from each other via a peer-to-peer network. Ecrent will play a crucial role in our online strategies to create effective matchups between supply and demand within the SEII sharing economy ecosystem."

Sharing Economy International, through its affiliated companies, designs, manufactures and distributes a line of proprietary high- and low-temperature dyeing and finishing machinery to the textile industry. The company said its latest business initiatives "are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models."

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