Chapter 85: Chapter 82: Company Established!
The name Huadun Biotech was proposed and quickly received unanimous approval from everyone present, and it was finally selected as the official name of the joint venture company.
Meanwhile.
The chairman of the New Creation Fund also sent feedback on the previous share distribution plan:
Approved!
Thus, the equity wrangling phase for Huadun Biotech has come to an end, leaving only the final step...
Contract signing!
Interestingly enough.
Zheng Zu, as the secretary-general of the New Creation Fund, naturally carried the official seal with him. Tian Liangwei’s seal was in his office, and as for Academician Pan...the "Application" and "Guarantee" were brought along, so the official seal wouldn’t be forgotten either.
As a natural person, Xu Yun didn’t need a stamp; a handwritten signature was legally effective. Hence, the conditions for directly signing the contract were met on-site.
Then Zheng Zu took out the drafted equity distribution contract, and the three official seals of Ke Da Innovation Fund, Physics College, and Life Science College were stamped in sequence.
The full name of this contract is the "Initial Equity Distribution Agreement of Huadun Biotech Co., Ltd." hereinafter referred to as the Agreement.
The Agreement stipulates an agreement on investment cooperation between Ke Da Innovation Fund, Physics College, Life Science College, and the natural person Xu Yun. The operating unit’s full name is Huadun Biotech Co., Ltd.
Registered capital is 13 million Huaxia Coin, with full subscription paid up in the first phase.
This round is not a financing round, but if financing is initiated in the future, it will directly start from the B-Round.
The lead investor of this round is Ke Da Innovation Fund, contributing a cash flow of 8 million Huaxia Coin along with additional resources, accounting for 27% of the shares.
The co-investors are Keda Physics College and Keda Life Science College, each contributing cash flow of 2 million along with additional resources, holding 10% each, totaling 20%.
The natural person Xu Yun joins with cash + technology, injecting 1 million in cash, and the technology item titled Fifth Generation Imidacloprid and its commercial derivatives, holding 38% of the shares.
An employee stock option pool of 15% is used for ESOP — Employee Stock Option Plan, and the issuance target will be decided by the board of directors within the specified limits of the option pool.
The company uses a dual-class share structure; the legal person and the first CEO are both held by Xu Yun, and relevant positions such as COO and CTO will be appointed subsequently.
The company account is jointly established by the above four parties, held as a public account, with Xu Yun having the right to use part of the funds. However, he must periodically disclose the usage of the funds and bear the responsibility.
Then Xu Yun took a deep breath and signed his name after the three official seals:
Xu Yun.
Purely from the perspective of the outcome, this Agreement should be considered the most perfect result.
Xu Yun holds 38% of the shares, but due to the adoption of an A-B share structure, Xu Yun’s current voting rights are as high as 89.1%.
Of course.
With the future development of Huadun Biotech, this number will definitely further decrease, stabilizing to a reasonable line of 68%-73%.
As for Ke Da, although the company internally is divided into fund and two college share modules, these three modules all belong to Ke Da and Science Institute systems.
The shares of the ’Ke Da System’ add up to a high of 47%, which stands unchallenged everywhere.
In addition, the four parties determined the seats of the board:
The company’s executive directors are two people, Xu Yun and Tian Liangwei.
There are also five director seats, equally shared by the fund, Physics College, and Life Science College.
Independent directors are not established temporarily because the company has not yet gone public.
These directors are mainly considered representatives from the funding side. Unless Xu Yun does something like emptying the account money, they are basically mascots.
Getting subsidy, making appearances on the financial reports, and such.
After the Agreement was signed, Academician Pan, while retracting the official seal, jokingly said:
"Chairman Xu, congratulations, congratulations, whether we will be eating abalone or mixed fish depends entirely on you."
"...."
Xu Yun looked at him speechlessly:
"Please just call me Xiaoxu, the term Chairman Xu gives me the creeps...."
Academician Pan chuckled and patted his shoulder. Then his expression gradually became serious:
"Xiaoxu, now that the company is established, do you have specific ideas on how to proceed?"
Seeing this, Xu Yun’s face turned serious and after a moment of contemplation, he answered:
"Director Pan, actually I also considered this issue before I came. First is the registration process of the company. The production of bio-pesticides requires inspection from both the agricultural and commercial sectors, unlike ordinary..."
Before Xu Yun finished speaking, Zheng Zu patted his chest and interrupted:
"Dr. Xu, regarding the company’s business scope, leave it to the New Creation Fund. We have special channels. It should all be settled within two weeks."
"That’d be great."
Xu Yun slightly relaxed a breath. Company registration is a stage he’s the least confident in, and now that the New Creation company can help solve it, it’s undoubtedly unloading a heavy burden.
He then continued:
"Apart from registering the company, three issues remain:
First is the establishment of mass production output, which needs to consider the venue, equipment, and sales channels, etc.
Second is patent approval and paper publication, which involves the uniqueness of our product.
Third is the selection of company function departments. At the very least, we should first secure a COO...."
Hearing Xu Yun’s words, Tian Liangwei couldn’t help but turn his head to glance at Academician Pan:
The entire argument is well-reasoned. It seems his disciple didn’t get too inflated because of suddenly owning a company.
This is undoubtedly a good thing.
After a while, Tian Liangwei asked:
"Xiaoxu, how long will it take to complete your paper?"
Xu Yun pondered for a moment and gave a time:
"Next time for sure!"
"Speak human language."
".....About two days."
Tian Liangwei touched his chin and nodded slightly:
"Alright, I’ll find someone after the meeting to send the solicitation letter for the journal.
The patent application has a specialized team at the school, so that’s not a big issue. But regarding the venue and equipment...
Xiaoxu, you will have to handle it personally. The school can only give you a lead, keep that in mind."
As Lu Prefecture is an inland provincial capital, there aren’t many areas suitable for long-line factories.
Some cutting-edge modern factories are mainly concentrated in the High-tech Zone, which was formerly Lu Prefecture Industrial Park.
For example, the National Quantum Information Laboratory that Academician Pan is responsible for, which had a total national investment of 100 billion for five years and a first phase investment of 7 billion, is located in the High-tech Zone.
Hence, the factory site for Huadun Biotech will also be selected in that vicinity.
However, while the area is designated, the specific site, price, and lease term aspects will all require Xu Yun to negotiate personally.
This is also a challenge presented by Tian Liangwei and Academician Pan — Xu Yun is an executive director of the company after all. Relying entirely on the school won’t do, right?
As the saying goes.
The greenhouse can only cultivate hollow fronts; actual combat can produce durable small steel cannons.
As one of the decision-makers with executive director powers in the company, Tian Liangwei would rather have him spend more money on the offline module construction than be strung up for a beating after the product launches.
Meanwhile, Academician Pan suddenly thought of something:
"Oh yeah, Xiaoxu, if you want to form a management team, I do have a few candidates I can recommend."
...
Note:
Yesterday, someone asked about the basis for the company’s bankruptcy, and argued strangely. Originally thought that once it’s on the shelf, there wouldn’t be such curious people, so I didn’t attach links. Now I realize I was careless...
Some people have quite interesting thought processes. They listed company names with a dozen founders’ names and used this to question the authenticity of the data, implying that only over thirty companies have been established globally over decades....
Currently, there are over 20 million various enterprises locally, with an average lifespan of 2.97 years, not to mention globally, and how many among them haven’t been shut down, right?
If the numerator is ten thousand and the denominator is one billion, the result is a calculation for one ten-thousandth, but they ignored the denominator and used the numerator to refute others. I reckon if this logic is unclear, there’s no point in being self-righteous....
Guzman, J., & Stern, S.(2015).Science, 347(6222), 606-609, the data you wanted, Mr. fellow, you’re welcome to check it.
This guy reminds me of another genius from the last book, who asked me for the paper and then said he didn’t have a ladder to access it. After providing a ladder, he told me he couldn’t understand English....