Glonghui, December 29 | Lianzhong (06899.HK) announced that on December 28, 2023, AGAE, an indirect non-wholly-owned subsidiary of the company (its shares are listed on NASDAQ in the US), announced that AGAE has entered into a share purchase agreement with strategic investors relating to the issuance and sale of subscription shares in a targeted increase at a purchase price of 0.9 US dollars per subscription share. Under the share purchase agreement, the total purchase price of the subscribed shares was approximately $6,597,000.00.

AGAE plans to use the net proceeds from targeted increases for business expansion, potential business partnerships with strategic investors, and other corporate purposes.

Elite Fun Entertainment Co., Ltd. (Elite Fun Entertainment Co., Ltd.) is a company incorporated under Macau law, mainly engaged in culture, entertainment, performances, exhibitions, large-scale events, artist management and other fields. The ultimate beneficial owner of the strategic investor is Mr Hsu Wai-ki.

Immediately before the targeted increase, AGAE was owned by the company at 32.6%. Following the completion of the targeted issuance, the company's shares in AGAE will be diluted and reduced to 27.2%.

The board of directors believes that this targeted increase is beneficial to both the company and AGAE as AGAE raises additional capital to invest in its potential future growth and expansion opportunities. As a result, this will benefit the company as a major shareholder of AGAE.