Sino Green Land to buy 80% of Hi-Quality Productions for $1.8M
What's the deal? Sino Green Land CorporationDealroom has a profile for this one. Try Dealroom → signed a stock purchase agreement on September 30, 2026, to acquire an 80% stake in Hi-Quality Productions Inc for US$1,800,000, according to an 8-K filed October 5. Seller Cheng You keeps the remaining 20%.
The terms: The price splits into US$540,000 cash and US$1,260,000 in Sino Green Land stock, issued at a fixed US$0.60 per share. Payment comes in three tranches: 40% at closing, 30% after six months, and 30% after 12 months.
The earn-out: The final tranche adjusts to Hi-Quality's audited fiscal 2026 net income. If net income tops US$550,000, total consideration rises to US$1,980,000; if it falls below US$450,000, the price is cut proportionally and the seller must refund any overpayment within 30 days.
Hi-Quality is a New Jersey-based producer in the recycled PET (RPET) business. Cheng You has agreed to stay on full-time for 12 months and sign a five-year non-compete in US RPET.
What could go wrong? Closing hinges on a 45-day due diligence period and a 90-day deadline from September 30. Sino Green Land can walk if it finds tax irregularities, hidden liabilities, or a single customer accounting for more than 60% of Hi-Quality's revenue.
The stock portion carries its own risk. If Sino Green Land uplists to Nasdaq and the volume-weighted average price over the first 20 trading days drops below US$0.60, the company must compensate the seller for the per-share shortfall.
The signal: The deal shows a small-cap buyer using an earn-out and equity-heavy structure to limit upfront cash, while tying the seller's payout and continued involvement to the target's actual performance.
Read more: kalkinemedia.com
Image credit: Generated with Gemini
