Newborn Town Inc. (SEHK:9911) entered into the Sale and Purchase Agreement to acquire Chizicheng Strategy Investment Limited from LIU Chunhe for $1 (CNY 6) on March 23, 2023. The consideration shall be settled in cash by the Newborn Town Inc. Chizicheng Strategy reported net assets of CNY 1.27 million as at December 31, 2022. Completion shall be conditional upon and subject to the consent from the Independent Shareholders approving the Sale and Purchase Agreement and approval from governmental authorities.

An independent board committee comprising all independent non-executive Directors has been established to advise the independent shareholders of Newborn Town. Somerley Capital Limited acted as financial adviser to Newborn Town Inc in the deal.