Form 4: Sharing Services Global Corp: Executive Chairman and HWH International Acquire Convertible Note and Warrants

Executive Chairman Chan Heng Fai Ambrose, through HWH International Inc., acquired a convertible promissory note and warrants in Sharing Services Global Corp.

Summary

• On March 31, 2025, HWH International Inc. entered into a securities purchase agreement with Sharing Services Global Corp.
• The agreement involved the issuance of a convertible promissory note to HWH in the amount of $150,000.
• The note is convertible into the Issuer's common stock at $0.80 per share at HWH's option until the maturity of the convertible note three (3) years from the date of the securities purchase agreement.
• Additionally, the Issuer granted HWH warrants exercisable into 937,500 shares of the Issuer's common stock.
• The warrants may be exercised for three (3) years from the date of the securities purchase agreement at an exercise price of $0.85 per share.
• Chan Heng Fai Ambrose, as Chairman, CEO, and majority stockholder of Alset Inc., and Chairman of HWH International Inc., has dispositive control over the securities owned by HWH International Inc.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The document describes a financial transaction. It's a positive for the company to receive funding, but there are potential dilution risks for existing shareholders.

Positives

• The investment by HWH International Inc. provides Sharing Services Global Corp. with $150,000 in funding.
• The conversion of the note and exercise of warrants could potentially increase the company's equity base.

Risks

• The conversion of the note and exercise of warrants could dilute existing shareholders' equity.
• The company's stock price may be affected by the issuance of new shares upon conversion and warrant exercise.

Management Comments

• Mr. Chan is the Chairman, Chief Executive Officer and majority stockholder of Alset Inc.
• Mr. Chan is the Chairman of HWH International Inc., which is a majority-owned subsidiary of Alset Inc.
• Mr. Chan has dispositive control over the securities of the Issuer owned by HWH International Inc.

Industry Context

This type of transaction, involving convertible notes and warrants, is a common method for smaller companies to raise capital. It allows investors to participate in potential future growth while providing immediate funding to the company.

Comparison to Industry Standards

• Convertible notes are frequently used by small-cap companies like Sharing Services Global Corp to secure funding, especially when traditional financing is difficult to obtain.
• The terms of the convertible note and warrants (conversion price, exercise price, and term) appear to be within the typical range for similar transactions in the micro-cap market.
• Comparable companies often use similar instruments to attract investors willing to take on higher risk for potential higher returns.

Stakeholder Impact

• Shareholders may experience dilution if the convertible note is converted and warrants are exercised.
• The company benefits from the infusion of capital, which can be used for operations and growth.

Key Dates

Keywords

convertible note, warrants, HWH International Inc., Chan Heng Fai Ambrose, SHRG, securities purchase agreement, beneficial ownership