Marvion Inc. Settles Debt to Enhance Capital Structure
On January 26, 2026, Marvion Inc. (OTCQB: MVNC) announced a significant step in its financial strategy by entering into a Settlement and Share Issuance Agreement with STAR Warehouse Engineering Limited. This agreement involves the issuance of shares to resolve an outstanding debt of HKD 3,950,000 that was owed by Marvion's wholly owned subsidiary, United Warehouse Management Limited. This initiative underscores the company's commitment to maintaining a robust capital structure and aligns with its ongoing growth strategies.
Details of the Share Issuance Agreement
Under the provisions of this agreement, Marvion will issue a total of 15,816,576 shares of its common stock at a price of $0.0321 per share. This pricing is based on the seven-day average closing price of the company’s stock prior to the agreement's effective date. The approval for this strategic move was granted by the company's Board of Directors on December 30, 2025.
Strategic Benefits of the Debt Settlement
The decision to convert debt into equity carries multiple strategic advantages for Marvion:
1.
Balance Sheet Improvement: By shifting liabilities to equity, the company can significantly decrease its debt obligations. This tactic not only enhances Marvion’s balance sheet but also boosts its financial flexibility.
2.
Cash Resource Preservation: Settling the debt through share issuance enables the company to conserve cash, allowing it to fund its operations and pursue new growth initiatives without draining its cash reserves.
3.
Stakeholder Interest Alignment: The equity settlement indicates a shared confidence between Marvion and its creditor, STAR, thereby reducing immediate cash outflows and strengthening their business relationship.
4.
Robust Governance: The complete endorsement from the Board of Directors demonstrates Marvion's commitment to strategic governance and decision-making.
Commitment to Growth
Marvion is steadfast in its mission to expand integrated logistics and warehousing services across Hong Kong and the larger Asia Pacific region. This recent debt settlement not only reinforces the company’s capital base but also positions it favorably for future growth and operational success. The successful execution of this agreement highlights Marvion's proactive approach to managing finances and fostering long-term shareholder value.
About Marvion Inc.
Marvion Inc., trading on the OTCQB under the ticker MVNC, specializes in providing comprehensive logistics and warehousing services catering to business clients in the Hong Kong market. The company prides itself on delivering one-stop transport and storage solutions tailored to meet a diverse range of client needs. For more information about their services and latest developments, visit their
website.
As Marvion continues to navigate through the dynamic landscape of logistics and supply chain management, its innovative strategies promise to enhance operational momentum and deliver long-term value to its shareholders.
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Key Takeaways:
- - Marvion Inc. has effectively settled HKD 3.95 million debt via share issuance.
- - The company aims to bolster its capital structure and support growth initiatives.
- - The settlement fosters confidence between Marvion and its creditors, enabling it to retain cash for future opportunities.