JTX Group v. United Properties CA2/2

FACTS AND PROCEDURAL BACKGROUND

I. Facts

A. JTX enters into a deal with Global Meat

Federation, Inc. (Global Meat) JTX is a California corporation controlled by Qingfu Xu (Xu). In May 2019, Xu met with Jamal Dawood (Dawood). Dawood, along with Jacky Lo and through an intermediary company, is the 50 percent owner of Global Meat. Global Meat, through an intermediary company, operates a slaughterhouse in Pico Rivera, California. On May 6, 2019, JTX and Global Meat memorialized a tentative agreement in a “term sheet” through which JTX would acquire a 55 percent ownership interest in Global Meat for $

2 million. One of the terms called for JTX to advance Global Meat up to $4 million in working capital by funding a revolving line of credit. On May 7, 2019, JTX and Global Meat signed a “Revolving Line of Credit Promissory Note.” Under this agreement, JTX offered to make up to $4 million available to Global Meat for a period of 90 days to use as working capital while JTX conducted due diligence to consummate the deal. Among other things, the agreement obligated Global Meat to refund any “advanced amounts within . . . 30 days” if the overarching deal did not go through.…