Leyou Technologies Holdings Limited and MEGA have conditionally agreed to enter into a joint arrangement for the development, operation and maintenance of the New Games, namely the five specific video games. However, an American multinational technology company, an independent third party of the Company, has expressed a firm intention to co-develop Game C with the Company whereby the parties will jointly develop Game C and then separately and exclusively market, publish and operate Game C in their respective designated territories. The Board is of the view that such arrangement is more favorable to the Company and the Shareholders than that in respect of Game C under the Cooperative Agreement with MEGA (whereby cooperation takes the form of the Company being the sole developer for Game C and MEGA providing the necessary funds for such development), and has the added benefit of the opportunity to cooperate with a high profile technology company. Such alternative co- development of Game C is in the final stage of discussion, and a definitive agreement relating to such co-development of Game C is expected to be entered into between the Company and the Potential Co-developer soon. On 5 June 2019 (after the trading hours of the Stock Exchange), the Company and MEGA entered into the Supplemental Cooperative Agreement to amend certain terms and conditions of the Cooperative Agreement as follows: Game C shall be removed from the scope of the Cooperation, such that the specific video games which shall be subject to the Cooperation shall be Game A, Game B, Game D and Game E only and that all references to Game C in the Cooperative Agreement shall be deleted; and the Long Stop Date will be revised from 30 June 2019 to 30 September 2019 or such other date as the Company and MEGA may agree in writing.