Fire Rock Holdings Limited entered into a non-legally binding memorandum of understanding to acquire the Business and assets of Summer Mountain Limited from Summer Mountain Limited for RMB 80 million.

Fire Rock Holdings Limited (SEHK:1909) entered into a non-legally binding memorandum of understanding to acquire the Business and assets of Summer Mountain Limited from Summer Mountain Limited for RMB 80 million on September 7, 2022. Fire Rock agrees to pay an amount of CNY 12.5 million to Summer Mountain as a refundable security deposit, wherein Fire Rock may choose to convert the security deposit (or part thereof) into part of the consideration for the possible acquisition if it formally implements the acquisition. Within 6 months, Fire Rock will conduct preliminary due diligence on the Summer Mountain.

As of March 1, 2023, Fire Rock Holdings Limited and Summer Mountain Limited entered into a supplemental MOU to MOU to extend the expiry date to June 6, 2023. As of May 5, 2023, Fire Rock Holdings Limited entered into the Sale and Purchase Agreement to acquire Business and assets of Summer Mountain Limited from Chan, and Song for CNY 80 million. Total Consideration of MYR 80 million, out of which MYR 16 million will be satisfied by cash and MYR 64 million will be satisfied by issuance of the Promissory Notes.

The Total Consideration shall be settled by the internal resources of the Company. Completion is conditional upon the fulfillment of the due diligence review of the Target.