Financial Support Agreement between Sterling Apparel Limited and JP Outfitters, Inc. (May 31, 2023)
Sterling Apparel Limited, the main supplier for JP Outfitters, Inc., agrees not to demand payment for $5.8 million owed and for additional inventory worth $6 million to be supplied within a year. Sterling will wait to collect these amounts until JP Outfitters completes its initial public offering. The agreement also assures that Sterling will continue supplying inventory without interruption. This arrangement supports JP Outfitters' financial stability during its IPO process.
Exhibit 10.39
Sterling Apparel Limited
18-19/F, Win Plaza, 9 Sheung Hei Street
San Po Kong, Kowloon, Hong Kong
May 31, 2023
JP Outfitters, Inc.
5345 Creek Road
Cincinnati, OH 45242
Re: Agreement of Financial Support
Dear Madam/Sir:
We are providing this letter in connection with the unaudited condensed consolidated financial statements of our majority-owned subsidiary, JP Outfitters, Inc. and Subsidiary (the “Company”) as of March 31, 2023 and for the three months ended March 31, 2023 and 2022. Sterling Apparel Limited (“Sterling”) is the primary supplier of inventories sold by the Company.
As of May 31, 2023, the Company owed Sterling approximately $5.8 million. Further, Sterling will also provide an additional $6 million worth of inventories within twelve months from the date the financial statements are issued. Sterling will not enforce its right to collect from the Company any trade payable for inventories supplied and the working capital loans extended until the Company receives its initial public offering proceeds. We also confirm that there will be no disruption to the supply of inventories ordered by the Company.
 | |
| Wong Mei Wai Alice | |
| Chief Executive Officer | |
| Sterling Apparel Limited | |
 | |
| Sam Chung | |
| Chief Financial Officer | |
| Sterling Apparel Limited | |
 | |
| Arnold Cohen | |
| President | |
| JP Outfitters, Inc. |
