PLBY Group, Inc. and Charactopia Licensing Limited (“Charactopia”) have entered into a shareholders agreement to form Playboy China, a joint venture that will jointly own and operate the Playboy branded consumer productsbusiness in parts of the Chinamarket, including mainland China. The Playboy China joint venture will focus on reinvigorating all aspects of the China-marketPlayboy apparel business, including online and offline retail strategies, product design and assortment, and brand marketing to its multi-generational audience. The Shanghai-based joint venture team will look to build on Playboy's current roster of licensees and online storefronts by adding newpartners and growing through newproduct categories yet to be developed in China with the Playboy brand.

The joint venture will be governed by a Board of Directors that includes representatives from both Playboy and Charactopia with Playboy retaining majority ownership of the Playboy China joint venture, which is valued by the partners at USD 250 million. The Playboy China joint venture team will work closely with the Playboy apparel team in the U.S. to ensure a unified presentation and positioning for the Playboy brand globally. The closing of the formation of the Playboy China joint venture pursuant to the shareholders agreement is subject to the execution of additional definitive documentation and the satisfaction of other conditions precedent.

PLBY Group has obtained consent from its senior secured lenders and holders of PLBY Group's Series A Preferred Stock for members of the PLBY Group to enter into the shareholders agreement and other related documentation and to consummate the transactions contemplated thereby, as applicable. There is no guarantee that members of the PLBY Group will be able to consummate the formation of the joint venture, or related transactions, or that the joint venture will be successful. PLBY Group expects to complete the formation, and begin operations of, the joint venture in the first quarter of 2023.