Gilo Industries Group Ltd. announced that it has entered into an investment agreement with new investor, KuangChi Science Limited (SEHK:439) for placement of shares for gross proceeds of £24,520,711 on January 16, 2017. As part of the transaction, the investor will subscribe to new shares for gross proceeds of £22,769,231 in private placement and acquire certain existing shares for gross proceeds of £1,751,480 of the company. The investor will invest through its wholly owned subsidiary Advance Summit Ltd. The investor will acquire 39.06% stake in the company through this transaction. The transaction will be completed in three tranches. The investor will subscribe shares for gross proceeds of £9,467,456, representing 19.14% stake in the company, in its first tranche. Upon achieving certain product targets, obtaining international certifications for its products and meeting income provisions stipulated in the investment agreement, the investor will subscribe shares for gross proceeds of £8,260,355 and acquire existing shares for gross proceeds of £1,751,480 in its second tranche. Upon the completion of the second tranche of investment, the investor will hold approximately 33.74% stake of the enlarged issued share capital of the company. The investor will subscribe shares for gross proceeds of £5,041,420 in its third tranche. The transaction is subject to all approvals required under the relevant foreign exchange laws and regulations of the PRC. The transaction is expected to be completed by December 31, 2019.