According to the Zhitong Finance App, China Xinhua TV (08356) and the offender Shunleetat (BVI) Limited jointly announced that on September 5, 2023, Jian Guoxiang and the seller China Xinhua News Television Network Co., Ltd. entered into a legally binding clause stipulating (including) the main terms and conditions of the sale agreement and share subscription agreement; proposed revisions to the terms of the existing convertible bond; and the terms of convertible bond A and convertible bond B. The directors believe that the new capital provided by the share subscription will resolve the company's liquidity problems, and that the proposed transactions under the terms and conditions will meet the interests and long-term interests of all stakeholders.

According to the terms and conditions, the seller will sell approximately 1,1886 million shares of the company to Jian Guoxiang, equivalent to about 29.3% of the company's total issued share capital at the date of this joint announcement. The total cost is approximately HK$16.6407 million, which is equivalent to HK$0.014 per share to be sold. Acquisitions and share subscriptions are not mutually conditional.

According to the terms and conditions, the company has agreed to issue a total of about 1,667 billion subscription shares to Jian Guoxiang. The share subscription price is HK$0.012 per subscribed share, at a total cost of HK$20 million. The net proceeds of approximately HK$19.9 million are intended to be used to repay the Group's outstanding debts and to be used as the Group's general working capital.

As of the date of this announcement, the acquisition and/or share subscription is ongoing and has not yet been completed. The acquisition is expected to be completed on or before February 23, 2024, and comprehensive documentation will be sent around February 26, 2024.

Furthermore, trading continues to be suspended.