Addentax Group Corp. Invests in Fresh Food Marketing Firm Well Information Technology
SHENZHEN, China – January 13, 2025 – Addentax Group Corp. (NASDAQ: ATXG), a company focused on garment manufacturing, logistics, property management, and subleasing, has announced a strategic investment in Well Information Technology Corporation.
Investment Details
Addentax has purchased a 2.5% equity stake in Well Information Technology (“Well InfoTech”) for USD $750,000 in cash. The investment comprises 3,750,000 common shares in Well InfoTech, a company incorporated under the jurisdiction of Nevada with its headquarters in Hangzhou, People’s Republic of China.
Well InfoTech’s Focus
Well InfoTech specializes in providing comprehensive marketing solutions, spanning both online and offline strategies. The firm primarily supports fresh food store owners and management personnel in major Chinese cities, including Hangzhou, Beijing, and Heilongjiang.
Their core mission is to enhance the visibility and profitability of fresh food businesses using a combination of digital tools and traditional marketing techniques.
Strategic Implications
This investment marks a notable shift for Addentax, as it moves beyond its traditional core businesses.
Further analysis of the deal indicates the following:
- The investment values Well InfoTech at $30 million. Given Addentax’s modest market capitalization of $4.4 million, the $750,000 investment represents a large allocation of capital–approximately 17% of the company’s value.
- Concerns have been raised given that Addentax is allocating substantial financial resouces for a relatively small equity stake.
