Nature's Miracle Holding has entered into a formal Settlement Agreement and Mutual Release with Megaphoton Inc. The agreement effectively resolves all outstanding legal disputes and trade payables between the two parties.
Under the terms of the agreement, Nature's Miracle will issue 15 million shares of common stock (approximately 13% of the Company's outstanding shares) to Megaphoton at a valuation of $0.46 per share. This issuance serves as full consideration for the forgiveness of $6.9 million in trade payables previously owed by Nature's Miracle's subsidiaries, Visiontech Group and Hydroman Inc. Additionally, the Company has agreed to reimburse Megaphoton $300,000 for legal costs.
This strategic settlement results in a one-time gain of $6.9 million and a corresponding increase in shareholder equity for the first quarter of 2026. The agreement brings a definitive end to the litigation process that began in 2022, when both companies filed complaints and cross-complaints against one another.
"We want to express our gratitude to the Megaphoton team for working with us to resolve this long-standing legal uncertainty," said Tie 'James' Li, Chairman and CEO of Nature's Miracle. "This settlement significantly reduces our liabilities and rationalizes our balance sheet, setting the stage for the Company's future growth and uplifting. We look forward to relaunching our agriculture and indoor growing business with the potential for future cooperation with Megaphoton, a premier producer of indoor growing equipment."
For more information:
Nature's Miracle
[email protected]
www.nature-miracle.com
