China VTV Ltd. (OTCPK:CVTV) entered into binding memorandum of understanding to acquire an unknown stake in Constellation Moshan Film and Television Media Company Limited from Xiao Du for CNY 600 million on September 30, 2019. Under the MOU, China VTV Ltd. shall issue shares equals to CNY 420 million along with payment in cash of CNY 180 million. Stock Consideration shall be adjusted based on the net profits of Constellation in the three fiscal years following the consummation of the transaction, during which the current management of Constellation shall remain in place to operate Constellation. Pursuant to the Binding MOU, CNY 100 million of the cash consideration shall be designated for the working capital of Constellation. Upon completion of the transaction, the China VTV Ltd shall elect Xiao Du to the board of directors of the China VTV Ltd. The parties intend to close the transaction on or before December 31, 2019.