Key Takeaways
- Webus plans a $300 million financing strategy to establish an XRP reserve.
- The XRP reserve aims to revolutionize cross-border payments with instant, low-cost settlements.
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Nasdaq-listed Webus International Limited on Tuesday submitted Form 6-K to the US SEC, disclosing a strategic agreement with Samara Alpha Management LLC, which sets the stage for the potential establishment of an XRP treasury.
Certain foreign private issuers with securities traded on US exchanges file Form 6-K with the SEC to provide current information about their operations, financial condition, or material events.
Its purpose is to keep US investors informed about material developments or changes that occur between the issuer’s annual or quarterly reports, ensuring transparency and equal access to information for US investors.
The filing comes after Webus announced on June 2 that it was exploring a financing strategy of up to $300 million to establish an XRP reserve aimed at supporting global payment solutions.
The Nasdaq-listed company said it plans to finance the XRP-focused treasury plan using available cash reserves, bank lending, shareholder guarantees, and institutional-backed credit facilities from traditional banks.
The Chinese mobility solutions provider also renewed its nationwide partnership with Tongcheng Travel Holdings Ltd., one of China’s largest online travel platforms, extending their “Wetour × Tongcheng” branded inter-city charter services throughout China, according to the Monday announcement.
“These strategic developments have the potential to create a powerful synergy between our domestic and international operations,” said Nan Zheng, CEO of Webus, in a statement.
Zheng noted that the partnership with Tongcheng would strengthen their China network infrastructure, while the integration of an XRP blockchain could potentially revolutionize the way cross-border payments are handled for both partners and travelers worldwide.
In addition to establishing a strategic XRP reserve for instant, low-cost cross-border settlements, the proposed financing would be used to develop blockchain infrastructure, including wallets and web3 loyalty tokens.
“Our technology roadmap now delivers end-to-end innovation,” Zheng added. “Domestically, our Tongcheng Partnership provides unmatched reach across China’s mobility landscape. Internationally, our potential XRP implementation can eliminate traditional payment friction, allowing instant settlement with chauffeurs and service providers worldwide while providing immediate refunds when needed.”
Webus shares have fallen approximately 40% since their Nasdaq debut in February, according to Yahoo Finance data. The stock saw a pre-market bounce of around 6% on Wednesday.
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