Strawbear Entertainment Group (SEHK:2125) and Jiangsu Straw Bear Films Ltd entered into non-legally binding Term Sheet to acquire 83.33% stake in Shanghai Gh Entertainment & Media Co., Ltd from Zheya (Shanghai) Film and Television Culture Studio and Xinyu Namei Film Investment Partnership on December 21, 2021. As per the transaction Strawbear Entertainment Group (SEHK:2125) and Jiangsu Straw Bear Films Ltd agreed to provide the loan in the principal amount of CNY 40 million to Zheya (Shanghai) Film and Television Culture Studio to repurchase 8% equity interest in Shanghai Gh Entertainment & Media Co., Ltd and Strawbear Entertainment Group (SEHK:2125) and Jiangsu Straw Bear Films Ltd are entitled to, by way of debt-to-equity swap, convert the principal amount of the loan into the consideration for the acquisition of approximately 16.67% equity interest in Shanghai Gh Entertainment & Media Co., Ltd after which Strawbear Entertainment Group (SEHK:2125) and Jiangsu Straw Bear Films Ltd will acquire the remaining stake in Shanghai Gh Entertainment & Media Co., Ltd. The transaction is subject to approval by board of directors, approval by shareholders of Shanghai Gh Entertainment & Media Co., Ltd, third party approval and consummation of due diligence and is expected to close on or before June 30, 2022.