Gelonghui September 11?01961.HK announced that on September 8, 2023, the company entered into a share purchase agreement with Infinities B & M Technology Limited (as seller), under which the seller conditionally agreed to sell the entire issued share capital of the target company (i.e. Infinities Wonder Limited) for a consideration of approximately RMB 126 million. The consideration will be repaid by allocating and issuing consideration shares at the issue price in accordance with the special authority to be sought by the Company at the EGM.
According to the share purchase Agreement, the consideration is approximately RMB 126 million, which will be repaid by allocating and issuing 96.3 million consideration shares to the seller. The issue price of the consideration shares is HK $1.4 per share, which is the same as the closing price of HK $1.4 on September 8, the date of the share purchase agreement. The consideration shares are equivalent to approximately 15.71% of the company's existing issued share capital and about 13.58% of the issued share capital after the expansion of the allotment and issue of consideration shares.
The target company is a limited company incorporated in the British Virgin Islands. It is an investment holding company. After the restructuring, the target company will indirectly hold a 60 per cent stake in Beijing playde, a limited liability company established under Chinese law. Since its establishment in 2020, Beijing playde has been mainly engaged in the development of mobile game products and holds a number of licenses and licenses necessary to operate mobile game business, such as a license for value-added telecommunications services.
Although it has been operating for a relatively short period of time since 2020, Beijing Tod signed a product development agreement with a well-known video game manufacturer in the United States in 2021 to produce a new mobile game. This collaboration has attracted a lot of attention because it combines the experience of Beijing Todo's simulation game creation with the extensive market penetration of American companies and its reputation in games. The mobile game is expected to be launched in 2024. Due to the reputation of American companies, it is expected that the launch of the game will attract a lot of attention and revenue. Beijing playde is also expected to enhance its popularity, thereby expanding its customer base and revenue. According to the agreement, Beijing playde also earns financial profits in excess of the development funds. Beijing Today will benefit from dividends based on game revenue. Therefore, the directors believe that this agreement gives Beijing Toude expansion potential and increased profits, indicating that it is developing in a positive direction.