On November 22, Grace Glory announced that on the evening of November 19, 2024, Macau Legend (01680.HK) received a notice from the Government of Cape Verde ("Cape Verde Government"), stating its decision to terminate the formulation of the Convention and its supplement and the resulting granting contract entered into by MLD Cabo Verde Resorts SA and MLD Cabo Verde Entretenimento SA (collectively referred to as "Cape Verde subsidiaries", indirect subsidiaries of the Company, mainly engaged in operating hotel and gambling business in Cape Verde) with the Government of Cape Verde. The Convention and grant are related to the construction and operation (including) of a hotel entertainment venue and hotel residence infrastructure in Praia Bay, Cape Verde.

The Cape Verde Government claims that the Cape Verde subsidiaries did not meet the final deadline set for the investment project under the Convention, nor did they complete the investment project as agreed. Therefore, the Cape Verde Government claims the right to terminate the Convention and grant, and to take over control of all assets previously granted to the Cape Verde subsidiaries by Cape Verde under the investment project, as well as assets already constructed by the Cape Verde subsidiaries ("such assets"). The company is currently actively seeking legal advice in Cape Verde to take appropriate action and intends to actively defend against these allegations to safeguard the interests of the Company and its shareholders.