From Business Insider · Lucia Moses · · 1m 40s
Khaby Lame's $975m deal frozen months after announcement
TikTok's biggest star's merger with a Hong Kong firm remains stalled as the stock crashes 99 percent.
In brief
TikTok's biggest star's merger with a Hong Kong firm remains stalled as the stock crashes 99 percent. Khaby Lame's nine hundred seventy five million dollar merger deal with Rich Sparkle Holdings remains frozen months after announcement, while the company's stock has collapsed ninety nine percent. Originally reported…
TikTok star's billion-dollar merger stalls
Khaby Lame, who has over one hundred sixty million followers, entered into an agreement on January nine with Rich Sparkle Holdings, a Hong Kong financial printing firm, to take his company public.
Deal valued at $975 million, now frozen
The merger would theoretically net Lame a major payday.But in late January, Lame went silent on the deal.A September thirty filing shows it remains conditional on due diligence, minimum valuation and stock exchange approval.
Rich Sparkle stock crashes 99 percent
After the January deal announcement, Rich Sparkle's stock shot up to about one hundred eighty dollars.On Thursday, it closed at one dollar ninety three.Several prominent brokerages had restricted or blocked trading in the stock.
Original deal promised 75 million shares
The January deal terms promised Lame's company seventy five million shares, valued at nine hundred seventy five million dollars.At Thursday's closing share price, those shares would be worth about one hundred forty five million dollars.
Rich Sparkle issued $39m in staff stock
Rich Sparkle issued nearly thirty nine million dollars in stock to staff as compensation during the six months ended March thirty first, resulting in an operating loss of almost forty million dollars.
Lame pursues other deals while waiting
Lame removed Rich Sparkle's stock ticker, A N P A, from his social media bios in late January.
What it means
Khaby Lame's nine hundred seventy five million dollar merger deal with Rich Sparkle Holdings remains frozen months after announcement, while the company's stock has collapsed ninety nine percent.
