Yi Zhang entered into preliminary non-binding proposal letter to acquire in Zhangmen Education Inc. (OTCPK:ZMEN.Y) from Gongqingcheng Genesis Investment Management Co., Ltd., CMC Capital Partners, SoftBank Investment Advisers (UK) Limited, Demantoid Gem Holdings Limited and Wenwei Entities for $9.6 million.

Yi Zhang entered into preliminary non-binding proposal letter to acquire in Zhangmen Education Inc. (OTCPK:ZMEN.Y) from Gongqingcheng Genesis Investment Management Co., Ltd., CMC Capital Partners, SoftBank Investment Advisers (UK) Limited, Demantoid Gem Holdings Limited and Wenwei Entities for $9.6 million on May 26, 2023. Consideration payable for the ADSs and the Shares acquired in the Acquisition is $0.56 per ADS or approximately $0.0077778 per Share (representing $0.56 divided by seventy-two) in cash. The price represents a premium of approximately 115% and approximately 56% to the volume-weighted average price of the ADSs during the last 30 and 90 trading days, respectively.

Yi Zhang, founder, chairman of the Board, chief executive officer currently beneficially own approximately 13.5% of all issued and outstanding Shares of Zhangmen Education Inc. Yi Zhang prepared to promptly negotiate and finalize mutually satisfactory definitive agreements with respect to the Acquisition. Yi Zhang secure adequate financing to consummate the Acquisition. Davis Polk & Wardwell LLP acted as legal advisor to Yi Zhang.