EOS Inc. (OTCPK:EOSS) entered into a purchase agreement to acquire an additional 31% stake in A-Best Wire Harness & Components Co., Ltd from Ing-Ming Lai for approximately TWD 520 million on August 7, 2019. Under the terms of transaction, EOS Inc. shall issue 10 million shares of its common stock as stock consideration and pay TWD 55 million in cash to Ing-Ming Lai. EOS Inc. shall pay the cash consideration to Ing-Ming Lai if and only if it successfully completes an Initial Public Offering of its common stock. Post-completion, stake owned by EOS Inc. in A-Best Wire Harness & Components will increased to 51% from 20%. In connection with the Purchase Agreement, EOS Inc. and Ing-Ming Lai entered into an exclusive sales agreement, pursuant to which EOS Inc. is granted the right as the exclusive distributor to sell all of A-Best’s products, including its Micro-ceramic magnetic resonance speakers in the world, and the right to use A-Best’s trademarks and copyrights in connection with the sale of such products. EOS Inc. and Ing-Ming Lai also entered into a management agreement pursuant to which EOS Inc. has agreed to maintain A-Best’s existing operations and Ing-Ming Lai’s positions as A-Best’s President and Chief Executive Officer of A-Best, until A-Best’s board of directors decides to terminate the terms of his positions. Pursuant to the management agreement, EOS Inc. shall also designate one individual to A-Best’s board of directors, and A-Best’s board of directors shall continue to maintain two director seats, where at least one of the two directors is designated by EOS Inc. until the Parties either reach a shareholder agreement or A-Best receives additional capital investment in equity or debt. The management agreement became effective upon execution. The transaction is subject to shareholder approval of EOS Inc. no later than December 31, 2019. The transaction is expected to close on September 30, 2019.