UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K/A
Amendment
No. 1
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): October 20, 2017
(Exact
name of registrant as specified in its charter)
Delaware
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000-55709
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47-1685128
|
(State
or Other Jurisdiction of Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification Number)
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4400
Route 9, Suite 3100 Freehold, NJ 07728
(Address
of principal executive offices) (zip code)
646-762-4517
(Registrant’s
telephone number, including area code)
Copies
to:
Stephen
M. Fleming, Esq.
Fleming
PLLC
49
Front Street, Suite 206
Rockville
Centre, New York 11570
Phone:
(516) 833-5034
Fax:
(516) 977-1209
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate
by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act
of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY
NOTE: Avalon GloboCare Corp. (the “Company”) is filing this Current Report on Form 8-K/A (Amendment No. 1) (the “8-K/A”)
in order to amend its previously filed Current Report on Form 8-K, as filed with the Securities and Exchange Commission on October
26, 2017 (the “Initial 8-K”), in order to file certain financial statements and to furnish certain pro forma financial
information pursuant to Item 9.01 of this Form 8-K/A. The Initial 8-K provided disclosure under Item 2.01 thereof regarding the
acquisition of Beijing Jieteng (GenExosome) Biotech Co. Ltd. by the Company’s majority owned subsidiary, GenExosome Technologies
Inc. Item 9.01 of Form 8-K provides that with respect to transactions described pursuant to Item 2.01 of Form 8-K, the financial
statements of businesses acquired may be filed, and pro forma financial information regarding such transactions may be furnished,
not later than 71 calendar days after the date that the initial report on Form 8-K must be filed. As such, the Company disclosed
in the Initial 8-K that it would file the required financial statements and furnish the required pro forma financial information
within that time frame. The Company is now providing the required financial statements set forth below.
Item
1.01
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Entry
into a Material Definitive Agreement.
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Item
2.01
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Completion
of Acquisition or Disposition of Assets.
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Item
3.02
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Unregistered
Sales of Equity Securities
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In
July 2017, Avalon GloboCare Corp. (the “Company”) formed GenExosome Technologies Inc., a Nevada corporation (“GenExosome”).
On September 29, 2017, Dr. David K. Jin was appointed as the sole director and as the Chief Executive Officer, Chief Medical Officer
and President, Meng Li was appointed as Chief Operating Officer and Secretary and Luisa Ingargiola was appointed as Chief Financial
Officer. On October 25, 2017, GenExosome and the Company entered into a Securities Purchase Agreement pursuant to which the Company
acquired 600 shares of GenExosome in consideration of $1,326,087 and 500,000 shares of common stock of the Company. The Company
is required to pay $876,087 of the cash purchase price by November 24, 2017 and $450,000 of the cash purchase price by December
24, 2017. In addition, the Company is required to deliver the 500,000 shares of its common stock no later than November 24, 2017.
On
October 25, 2017, GenExosome entered into and closed an Asset Purchase Agreement with Yu Zhou, MD, PhD, pursuant to which the
Company acquired all assets, including all intellectual property, held by Dr. Zhou pertaining to the business of researching,
developing and commercializing exosome technologies including, but not limited to, patent application number CN 2016 1 0675107.5
(application of an Exosomal MicroRNA in plasma as biomaker to diagnosis liver cancer), patent application number CN 2016 1 0675110.7
(clinical application of circulating exosome carried miRNA-33b in the diagnosis of liver cancer), patent application number CN
2017 1 0330847.X (saliva exosome based methods and composition for the diagnosis, staging and prognosis of oral cancer) and patent
application number CN 2017 1 0330835.7 (a novel exosome-based therapeutics against proliferative oral diseases). In consideration
of the assets, GenExosome agreed to pay Dr. Zhou $876,087 in cash no later than November 24, 2017, transfer 500,000 shares of
common stock of the Company to Dr. Zhou no later than November 24, 2017 and issue Dr. Zhou 400 shares of common stock of GenExosome
no later than November 24, 2017. As a result of the above transactions, the Company holds 60% of GenExosome and Dr. Zhou holds
40% of GenExosome.
On
October 25, 2017, GenExosome entered into and closed a Stock Purchase Agreement with Beijing Jieteng (GenExosome) Biotech Co.
Ltd., a corporation incorporated in the People’s Republic of China (“Beijing GenExosome”) and Dr. Zhou, the
sole shareholder of Beijing GenExosome, pursuant to which GenExosome acquired all of the issued and outstanding securities of
Beijing GenExosome in consideration of a cash payment in the amount of $450,000, which shall be paid upon Beijing GenExosome recording
the change in ownership with the Ministry of Commerce of the People’s Republic of China in accordance with the Interim Measures
for Record Management regarding the Establishment and Change of Foreign-invested Enterprises (revised).
On
October 25, 2017, GenExosome increased its size of its board of directors from one to four and appointed Wenzhao “Daniel”
Lu, Meng Li and Dr. Zhou to the board of directors. In addition, Dr. Zhou was appointed as Co-Chief Executive Officer of GenExosome.
On
October 25, 2017, Dr. Zhou and GenExosome entered into an Executive Retention Agreement pursuant to which Dr. Zhou agreed to serve
as Co-Chief Executive Officer in consideration of an annual salary of $160,000. Dr. Zhou and GenExosome also entered into an Invention
Assignment, Confidentiality, Non-Compete and Non-Solicit Agreement.
Beijing
GenExosome is engaged in the development of exosome technology to improve diagnosis and management of diseases. Exosomes are tiny,
subcellular, membrane-bound vesicles in diameter of 30-150 nm that are released by almost all cell types and that can carry membrane
and cellular proteins, as well as genetic materials that are representative of the cell of origin. Profiling various bio-molecules
in exosomes may serve as useful biomarkers for a wide variety of diseases. Beijing GenExosome’s research kits are designed
to be used by researchers for biomarker discovery and clinical diagnostic development, and the advancement of targeted therapies.
Currently, research kits and service are available to isolate exosomes or extract exosomal RNA/protein from serum/plasma, urine
and saliva samples. Beijing GenExosome is seeking to decode proteomic and genomic alterations underlying a wide-range of pathologies,
thus allowing for the introduction of novel non-invasive “liquid biopsies”. Its mission is focused toward diagnostic
advancements in the fields of oncology, infectious diseases and fibrotic diseases, and discovery of disease-specific exosomes
to provide disease origin insight necessary to enable personalized clinical management. There is no guarantee that Beijing GenExosome
will be able to successfully achieve its stated mission.
The
foregoing information is a summary of the agreements involved in the transactions described above, is not complete, and is qualified
in its entirety by reference to the full text of the agreements, which are attached an exhibit to this Current Report on Form
8-K. Readers should review the agreements for a complete understanding of the terms and conditions associated with this transaction.
Item
9.01 Financial Statements and Exhibits
(a)
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Financial
Statements of Business Acquired
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Audited Financial Statements of Beijing Jieteng (GenExosome) Biotech Co. Ltd. as of December 31, 2016 and
2015, and for the year ended December 31, 2016 and for the period from August 7, 2015 (date of inception) through December 31,
2015 (See Exhibit 99.1)
|
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Unaudited Financial Statements of Beijing Jieteng (GenExosome) Biotech Co. Ltd. as of June 30, 2017 and for
the three and six months ended June 30, 2017 and 2016 (See Exhibit 99.2)
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(b)
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Pro
Forma Financial Information
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(See
Exhibit 99.3)
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(c)
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Shell
Company Transactions
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Not
applicable
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|
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Exhibit
No.
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Description
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4.1
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Form of Subscription Agreement between Avalon GloboCare Corp. and the October 2017 Accredited Investors (1)
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10.1
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Securities Purchase Agreement between Avalon GloboCare Corp. and GenExosome Technologies Inc. dated October 25, 2017 (1)
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10.2
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Asset Purchase Agreement between GenExosome Technologies Inc. and Yu Zhou dated October 25, 2017 (1)
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10.3
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Stock Purchase Agreement between GenExosome Technologies Inc., Beijing Jieteng (GenExosome) Biotech Co. Ltd. and Yu Zhou dated October 25, 2017 (1)
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10.4
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Executive Retention Agreement between GenExosome Technologies Inc. and Yu Zhou dated October 25, 2017 (1)
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10.5
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Invention Assignment, Confidentiality, Non-Compete and Non-Solicit Agreement between GenExosome Technologies Inc. and Yu Zhou dated October 25, 2017 (1)
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99.1
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Audited
Financial Statements of Beijing Jieteng (GenExosome) Biotech Co. Ltd. as of December 31, 2016 and 2015, and for the year
ended December 31, 2016 and for the period from August 7, 2015 (date of inception) through December 31, 2015
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|
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99.2
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Unaudited Financial Statements of Beijing Jieteng (GenExosome) Biotech Co. Ltd. as of June 30, 2017, and for
the three and six months ended June 30, 2017 and 2016
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|
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99.3
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Pro Forma Financial Information for Avalon GloboCare Corp. and subsidiaries and Beijing Jieteng (GenExosome)
Biotech Co. Ltd. as of June 30, 2017, and for the three and six months ended June 30, 2017 and for the year ended December 31,
2016
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(1)
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Incorporated
by reference to the Form 8-K Current Report filed with the Securities and Exchange Commission
on October 26, 2017.
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SIGNATURES
Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
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AVALON
GLOBOCARE CORP.
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Dated:
November 13, 2017
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By:
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/s/
Dr. David K. Jin
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Name:
David K. Jin
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Title:
Chief Executive Officer, President and Director
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