Lawton Development Co., Ltd (SHSE:600209) announced that it has entered into the shares subscription agreement for private placement of not more than 131,703,350 A shares at an issue price of CNY 3.40 per share and not less than 80% of the average price in the 20 trading days before the pricing reference date for gross proceeds of not more than CNY 447,791,390 on June 3, 2020. The transaction will include participation from Zhejiang Daily Digital Culture Group Co.,Ltd. (SHSE:600633) for not more than 71,250,000 shares, Shanghai Duo Sport Group Development Co., Ltd. for not more than 17,123,317 shares, fund managed by Zhong (Shanghai) Venture Capital Management Co., Ltd. for not more than 37,791,770 shares, and two other investors for an aggregate of not more than 5,538,263 shares. The shares to be issued have a par value of CNY 1 per share.

Zhejiang Daily Digital Culture Group Co.,Ltd. (SHSE:600633) plans to become the controlling shareholder, post the closing. The number of shares to be issued does not exceed 30% of the company's total share capital before the issuance. The transaction has been approved by the board of directors of the company at 26th session of the 7th directorate and 20th meeting of the seventh supervisory committee and is subject to the approvals of the shareholders meeting and the China Securities Regulatory Commission.

The transaction has also been approved by the board of directors of Zhejiang Daily Digital Culture Group Co.,Ltd. (SHSE:600633) in its 48th session of the 8th directorate meeting. The shares cannot be transferred within 18 months from the issuance closing date. The resolution for the issuance of shares is valid for 12 months from the date of deliberation and approval by the shareholders' meeting.