China Candy Holdings Limited (SEHK:8182) entered into an sale and purchase agreement to acquire 70% stake in Yellow River Securities Limited from Ong Chi King for HKD 11.2 million on September 19, 2017. Candy Holdings Limited shall settle the consideration as HKD 2 million as deposit upon execution of the sale and purchase agreement, which shall be refundable without interest within seven business days upon termination of the sale and purchase agreement and HKD 9.2 million which shall be paid on completion. In the event that either of the conditions is not satisfied on or before the long stop date, the sale and purchase agreement shall terminate and China Candy Holdings Limited and Ong Chi King thereto shall be under no further liability arising out of the sale and purchase agreement. If the conditions cannot be satisfied on or before the long stop date due to the gross negligence, willful default or fraudulent conduct of China Candy Holdings Limited, the deposit of HKD 2 million shall be forfeited by Ong Chi King. Post completion, Yellow River Securities Limited will become subsidiary of China Candy Holdings Limited. The unaudited total and net asset value of Yellow River Securities Limited at August 31, 2017 were approximately HKD 7.3 million and HKD 5.4 million respectively. The deal is subject to Board approval of China Candy Holdings and approval of Securities and Futures Commission of Hong Kong. The long stop date for the deal is March 18, 2018 and the completion shall take place on any business day within three business days of the satisfaction or waiver (as the case may be) of the conditions precedent at such place and time as mutually agreed by and between China Candy Holdings Limited and Ong Chi King.