Marvion Inc. (OTCQB: MVNC) announced that its Chief Executive Officer, Chan Sze Yu, has entered into a debt‑to‑equity conversion agreement that exchanges a $500,000 receivable owed by the company for 14,992,504 restricted common shares at a conversion price of $0.03335 per share, calculated from the 15‑day average closing price immediately before the signing date.
Prior to the conversion, Marvion’s balance sheet as of December 2, 2025 showed total shareholder equity of $‑5.4 million and total debt of $3.2 million, yielding a debt‑to‑equity ratio of –59.1%. The conversion eliminates the $500,000 liability and increases equity to $‑4.9 million, improving the ratio to roughly –58.5% and moving the company closer to a positive equity position.
CEO Chan Sze Yu said that choosing equity over cash repayment reflects his confidence in Marvion’s long‑term growth prospects and aligns his compensation with the interests of shareholders. "Choosing equity over cash is a reflection of my strong belief in Marvion’s long‑term growth trajectory," he stated.
The 14,992,504 shares issued are restricted and subject to Rule 144 resale restrictions, limiting immediate dilution. The conversion therefore strengthens the balance sheet without creating an immediate dilution risk for existing shareholders.
Marvion is expanding its warehousing, logistics, and consulting operations in Hong Kong and the United States. United Warehouse Management Limited, a subsidiary, has signed a 12‑year land lease to expand warehouse operations in Hong Kong and plans to construct two additional warehouses. The receivable that was converted is tied to performance milestones of acquired subsidiaries, providing a clear link between the transaction and the company’s expansion strategy.
Financially, Marvion’s third‑quarter 2025 results show sales of $0.948 million, up 144% from $0.390 million a year earlier, and a net income of $0.005 million versus a loss of $0.415 million in Q3 2024. For the first nine months of 2025, sales were $2.48 million compared with $1.02 million in the prior year, and net income was $0.120 million versus a loss of $0.300 million. These figures illustrate a clear turnaround toward profitability.
The debt‑to‑equity conversion, combined with the company’s improving revenue and profitability, strengthens Marvion’s financial position and supports its expansion plans. The move signals management’s confidence in the company’s growth trajectory and positions Marvion to pursue further opportunities in the logistics and warehousing sector.
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