Xi'an Catering Co., Ltd. announced that it has entered into an share subscription agreement to issue not more than 149,716,776 A shares at a price of CNY 4.06 per share for gross proceeds of not more than CNY 607,850,111 on August 28, 2020. The transaction will include participation from returning investorXi'an Tourism Co., Ltd.for 105,000,000 shares, and Shaanxi Food & Agriculture Group Co., Ltd. for 74,858,388 shares. Xi'an Tourism Co., Ltd. presently hold 21.04% of the stake in the company.

The shares to be issued shall have hold period of 36 months from the issuance closing date and shares to be subscribed by Shaanxi Food & Agriculture Group Co., Ltd. will have the hold period of 18 months from the issuance closing date. The transaction has been approved in the 6th meeting of the company's and 9th directorate meeting. The transaction is subject to the approvals of the shareholders meeting and from the China Securities Regulatory Commission.