GREEN VISION BIOTECHNOLOGY CORP. - FORM 8-K - EX-99.2 - UNAUDITED PRO FORMA - May 12, 2017

Attached files

file filename
EX-99.1 - AUDITED CONSOLIDATED FINANCIAL STATEMENTS - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex991.htm
EX-16.1 - LBB & ASSOCIATES - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex161.htm
EX-10.4 - ESCROW AGREEMENT - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex104.htm
EX-10.3 - VOTING RIGHTS PROXY - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex103.htm
EX-10.2 - OPERATING AGREEMENT - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex102.htm
EX-10.1 - CONSULTING SERVICES AGREEMENT - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex101.htm
EX-2.2 - SHARE EXCHANGE AGREEMENT - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex22.htm
EX-2.1 - SHARE EXCHANGE AGREEMENT - GREEN VISION BIOTECHNOLOGY CORP.vibx_ex21.htm
8-K - FORM 8-K - GREEN VISION BIOTECHNOLOGY CORP.vibx_8k.htm

EXHIBIT 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL DATA

 

The following unaudited pro forma condensed combined statement of operations of Lutu International Biotechnology Limited, (“Lutu International” or the "Company") gives effect to the merger of Lutu International and Green Vision Biotechnology Corp. ("GVBT") as if such transaction occurred at the beginning of the periods presented. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2016 is derived from the audited financial statements of Lutu International for the year ended December 31, 2016 and unaudited financial statements of GVBT for the twelve months ended December 31, 2016.

 

The unaudited pro forma condensed combined balance sheet at December 31, 2016 gives effect to the Merger of Lutu International and GVBT as if such transaction occurred on December 31, 2016.  The unaudited pro forma condensed combined balance sheet is derived from the audited balance sheets of Lutu International as of December 31 2016 and unaudited balance sheet of GVBT as of December 31 2016.

 

The unaudited pro forma condensed combined financial data do not reflect the effects of any anticipated changes to be made by Lutu International in its operations from the historical operations and are presented for informational purposes only and should not be construed to be indicating (i) the results of operations or the financial position of Lutu International that actually would have occurred had the proposed merger been consummated as of the dates indicated or (ii) the results of operation or the financial position of Lutu International in the future.

 

The proposed Merger is expected to be accounted for as a reverse merger and it is the intention of the parties to discontinue the operations of GVBT immediately upon closing.

 

The following pro forma condensed combined financial data and notes are qualified in their entirety by reference to, and should be read in conjunction with, "Management's Discussion and Analysis of Financial Condition and Results of Operation," the consolidated financial statements and notes thereto of Lutu International and other historical information included elsewhere in this filing.

  

 
FF-1
 
 

 

Green Vision Biotechnology Corp.  

Proforma Condensed Combined Balance Sheet  

As of December 31, 2016

 

 

 

 

 

 

 

 

 

 Pro Forma

 

 

 

Lutu International

 

 

GVBT

 

 

Adjustments

 

 

Combined

 

 

 

 (Audited)

 

 

 (Unaudited)

 

 

 

 

 (Unaudited)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 518,849

 

 

 $ -

 

 

 $ -

 

 

 $ 518,849

 

Accounts receivable, net

 

 

 791,800

 

 

 

 

 

 

 

 

 

 

 

 791,800

 

Inventories

 

 

 231,976

 

 

 

 

 

 

 

 

 

 

 

 231,976

 

Advance to suppliers

 

 

 53,220

 

 

 

 

 

 

 

 

 

 

 

 53,220

 

Other receivables

 

 

 106,149

 

 

 

 

 

 

 

 

 

 

 

 106,149

 

Amount due from related parties

 

 

 1,814,133

 

 

 

 

 

 

 

 

 

 

 

 1,814,133

 

Property, plant and equipment

 

 

 3,117,449

 

 

 

 

 

 

 

 

 

 

 

 3,117,449

 

Intangible assets

 

 

 864,981

 

 

 

 

 

 

 

 

 

 

 

 864,981

 

Long term lease prepayment

 

 

 20,005

 

 

 

 

 

 

 

 

 

 

 

 20,005

 

Total assets

 

 $ 7,518,562

 

 

 $ -

 

 

 $ -

 

 

 $ 7,518,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 146,222

 

 

 $ -

 

 

 $ -

 

 

 $ 146,222

 

Advance from customer

 

 

 11,511

 

 

 

 

 

 

 

 

 

 

 

 11,511

 

Other payable

 

 

 183,212

 

 

 

 

 

 

 

 

 

 

 

 183,212

 

Other tax payable

 

 

 27,233

 

 

 

 

 

 

 

 

 

 

 

 27,233

 

Accrued expenses

 

 

 118,560

 

 

 

 7,218

 

 

 

 

 

 

 

 125,778

 

Amount due to related parties

 

 

 6,419,136

 

 

 

 82,365

 

 

 

 

 

 

 

 6,501,501

 

Amount due to holding company

 

 

 3,943,856

 

 

 

 

 

 

 

 

 

 

 

 3,943,856

 

Total liabilities

 

 

 10,849,730

 

 

 

 89,583

 

 

 

 -

 

 

 

 10,939,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 100

 

 

 

 60,790

 

 

 

 (100 )

 

 

 60,790

 

Additional paid in capital

 

 

 42,780

 

 

 

 (16,862 )

 

 

 100

 

 

 

 26,018

 

Accumulated other comprehensive loss

 

 

 (174,098 )

 

 

 

 

 

 

 

 

 

 

 (174,098 )

Accumulated deficit

 

 

 (3,199,950 )

 

 

 (133,511 )

 

 

 

 

 

 

 (3,333,461 )

Total stockholders’ deficit

 

 

 (3,331,168 )

 

 

 (89,583 )

 

 

 -

 

 

 

 (3,420,751 )

Total liabilities and stockholders’ deficit

 

 $ 7,518,562

 

 

 $ -

 

 

 $ -

 

 

 $ 7,518,562

 

 

 
FF-2
 
 

 

Green Vision Biotechnology Corp.  

Proforma Condensed Combined Statement of Operations  

For the Year/Twelve Months Ended December 31, 2016  

 

 

 

Lutu International

 

 

GVBT

 

 

Adjustments

 

 

Pro Forma Combined

 

 

 

 (Audited)

 

 

 (Unaudited)

 

 

 

 

 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 1,276,722

 

 

 $ -

 

 

 $ -

 

 

 $ 1,276,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 944,987

 

 

 

 -

 

 

 

 

 

 

 

 944,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 331,735

 

 

 

 -

 

 

 

 

 

 

 

 331,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 1,378,405

 

 

 

 58,466

 

 

 

 

 

 

 

 1,436,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

 (1,046,670 )

 

 

 (58,466 )

 

 

 

 

 

 

 (1,105,136 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 (3,227 )

 

 

 -

 

 

 

 

 

 

 

 (3,227 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations before income taxes

 

 

 (1,049,897 )

 

 

 (58,466 )

 

 

 

 

 

 

 (1,108,363 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 (1,049,897 )

 

 

 (58,466 )

 

 

 

 

 

 

 (1,108,363 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation loss

 

 

 (122,997 )

 

 

 -

 

 

 

 

 

 

 

 (122,997 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 $ (1,172,894 )

 

 $ (58,466 )

 

 $ -

 

 

 $ (1,231,360 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share information – basic and fully diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Weighted average shares outstanding, basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 60,790,000

 

   Net loss per share, basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 $ (0.02 )
 
 
FF-3
 
 

 

Green Vision Biotechnology Corp.

Notes to Condensed Combined Proforma Financial Statements

 

Note 1.  Description of the Transaction

 

On May 12, 2017, Green Vision Biotechnology Corp., a Nevada corporation (“GVBT”), entered into separate Investment Agreements (the “Investment Agreements”) with 3 shareholders (the “Investors”) of Lutu International Biotechnology Limited a Cayman Islands corporation (“Lutu International”) who are the owners of one hundred percent (100%) of the outstanding shares of Lutu International.  Pursuant to the terms of the Investment Agreements, each of the Investors agreed to make a direct investment in GVBT in the form of a contribution to GVBT of all shares of common stock of Lutu International owned by the Investor (“Lutu International Shares”), and GVBT agreed to issue to each of the Investors approximately 1,000,000 shares of common stock of the Registrant for each Lutu International Cayman Share invested in GVBT Nevada.  At the time of closing under the Investment Agreements, the Investors will invest a total of 100 Lutu International Cayman Shares (representing 100% of the outstanding stock of Lutu International) in GVBT, by transferring ownership of such shares to GVBT, and GVBT will issue a total of 100,000,000 shares of common stock of GVBT to the Investors in exchange for their Lutu International Cayman Shares.   The effect of the transaction will be to make Lutu International and its subsidiaries wholly-owned subsidiaries of GVBT, and to cause a change of control of GVBT.  Upon the completion of the closing, the Investors will own a total of 100,000,000 shares of common stock of GVBT representing 62.2% of its issued and outstanding common stock.

 

The transaction is being accounted for as a “reverse merger,” since the stockholders of Lutu International will own a majority of the outstanding shares of GVBT’s common stock immediately following the completion of the transaction.  Lutu International is deemed to be the accounting acquirer in the reverse merger.  Consequently, the assets and liabilities and the historical operations that will be reflected in the financial statements for periods prior to the transaction will be those of Lutu International and its subsidiaries, and will be recorded at the historical cost basis of Lutu International.  After completion of the transaction, GVBT’s consolidated financial statements will include the assets and liabilities of GVBT and Lutu International and its subsidiaries, the historical operations of Lutu International and its subsidiaries, and the operations of GVBT from the closing date of the transaction.

 

Note 2.  Presentation

 

The proforma condensed combined financial statements gives effect to the transaction as if occurred at the beginning of the periods presented.

 

 
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GREEN VISION BIOTECHNOLOGY CORP. Reports