• Forsan exits Tianxing joint venture for A$8.3M
• AMI ceases operations, assets to be divested
• Group remains solvent with A$1.78M cash balance

Merchant House International Limited (ASX: MHI) has released its Quarterly Activities Report for the quarter ending 31 December 2024. Key highlights include:Forsan: Forsan historically had primary involvement in the export of work boots, waterproof and safety shoes to customers based in the USA. On 30 May 2024, Forsan announced it had entered into a binding agreement for the sale of its 33.79% interest in Tianjin Tianxing Kesheng Leather Products Company Limited ('Tianxing') to Tianjin Wuxi International Trading Company Limited for approximately A$8,300,000 (RMB 40,000,000) before taxes and other fees. The final tranche of the sale proceeds was received on 9 January 2025.AMI: AMI historically was a designer and manufacturer of home textile products, particularly towels. On 30 September 2024, the Company ceased operations following sustained long-term losses. The Company is currently seeking to dispose of the land, buildings and equipment associated with the business.Corporate: While the Group has ceased the business operations noted above during 2024, it remains financially solvent with sufficient cash reserves to meet its liabilities. The Board has initiated the process of preparing the sale of the remaining assets held by AMI, and following a successful divestment, shareholder approval will be sought for the distribution of residual funds to shareholders, voluntarily delisting from ASX and a winding up of the Group. As at 31 December 2024, the group has a cash balance of A$1,778,000 in the bank.The report also includes additional Appendix 4C disclosures, such as a summary of expenditure incurred and payments made to related parties during the quarter.