XcelMobility Inc. (OTCPK:XCLL) entered into an asset purchase agreement to acquire Online Sports Lottery Business Unit from Xianjiang Silvercreek Digital Technology Co., Ltd. for CNY 9.8 million on September 22, 2014. XcelMobility will issue 80 million shares as consideration. No shares will be issued upon the closing date of the transaction. The shares will be issued upon achievement of the following milestones: 10 million shares to be issued in the event that XcelMobility derives initial online lottery sales revenue of over CNY 0.01 million per month from the business developed in connection with the assets on or before October 1, 2014, 10 million shares to be issued in the event that XcelMobility derives lottery revenue of over CNY 3 million per month from the business developed in connection with the assets on or before March 31, 2015; 10 million shares to be issued in the event that XcelMobility derives initial online lottery sales revenue of over CNY 20 million per month from the business developed in connection with the assets on or before December 31, 2015; 40 million shares to be issued in the event that XcelMobility obtains a lottery gaming license from the People's Republic of China and 10 million shares to be issued based on the achievement of certain incentives as determined by the Board of Directors of the XcelMobility. The transaction has been approved by the Board of Directors of XcelMobility and Silver Creek Digital.

The transaction is subject to various standard closing conditions, government approval, approval by shareholders of Silver Creek, due diligence investigation and is expected to close within 30 days. Stanley Wunderlich of Consulting for Strategic Growth 1 Ltd acted as the public relation advisor in the transaction. Mark C. Lee of Greenberg Traurig, LLP acted as legal advisor to XcelMobility.