U.S.-based Pay88 has signed a Letter of Intent with QianBao Technology to acquire various intellectual property, approximately US$300,000 in cash, certain real estate holdings, its online payment platform system, software, domain name and its customer base.
In consideration for the assets purchased, Pay88 shall issue preferred stock to QianBao, with certain preferences and conversion rights to be negotiated between the parties.
"This intended transaction with QianBao Technology is consistent with our business strategy to leverage extensive resources to create increased value for our shareholders," said Guo Fan, Pay88's CEO. "Aside from obtaining an immediate base of electronic payment revenues, we believe that the acquisition of QianBao will help us to expedite our business plan and allow for broader market penetration."
The closing of the transactions contemplated by this agreement are still subject to the completion of the due diligence investigation of both parties. It is the intent of the parties that definitive documentation be executed and delivered and the closing occur on or before October 31, 2006.