Note 1 - Organization and Nature of Operations

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Nature of Operations [Text Block]

1. Organization and nature of operations

ChinaNet Online Holdings, Inc. (the “Company”) is a holding company, which, through certain contractual arrangements with operating companies in the People’s Republic of China (the “PRC”), is engaged in providing advertising, precision marketing, online to offline sales channel expansion and the related data services to small and medium enterprises in the PRC, through distribution of the right to use search engine marketing service the Company purchased from key search engines, online advertising placements on the Company’s advertising portals, sales of effective sales lead information and provision of TV advertising service.

On

August 25, 2019,

the Company through its wholly-owned subsidiary, ChinaNet Investment Holdings Ltd. acquired

100%

equity interest in Grandon Investments Limited, an entity incorporated in British Virgin Islands (“Grandon BVI”), for a cash consideration of

US$100.

Grandon BVI did

not

conduct any business activities since incorporation through

August 25, 2019.

On

September 25, 2019,

the Company

closed on the

first

half of a private placement with a select group of investors (the “Investors”) related the Securities Purchase Agreement entered into on

August 7, 2019.

In connection with the closing, the Company issued

1,608,430

shares of common stock (the “Shares”) in consideration for

$2.4

million. Subsequently,

on

October 28, 2019,

the Company closed on the

second

half of the private placement with the select group of investors. In connection with the closing, the Company issued another

1,608,430

shares of common stock in consideration for

$2.4

million. Each Share was sold to the Investors at

$

1.4927

per Share. The private placement was conducted pursuant to Section

4

(

2

) of the Securities Act of

1933,

as amended, and Regulation S promulgated thereunder.