Business
Dragon Victory International Limited Announces Entry into a Binding Term Sheet
HANGZHOU, China, June 15, 2021 (GLOBE NEWSWIRE) -- Dragon Victory International Limited (Nasdaq: LYL or the “Company”), a company that offers supply chain
About this update from Metalpha Technology Holding Limited
[{"type":"text","content":"HANGZHOU, China, June 15, 2021 (GLOBE NEWSWIRE) -- Dragon Victory International Limited (Nasdaq: LYL or the “Company”), a company that offers supply chain management platform services to auto parts suppliers through its supply chain management platform and quality incubation services to entrepreneurs in China announced today that it has entered into a binding term sheet (the “Binding Term Sheet”) in connection with a business transformation transaction (the “Business Transformation”) and potential investment with Natural Selection Capital Holdings Limited (“Natural”), Mr. Ni Ming (together with Natural, each a “Consultant,” and collectively, the “Consultants”), LSQ Investment Fund (“1st Closing Purchaser”), and certain purchasers represented by Elephas Global Master Fund (each a “2nd Closing Purchaser,” and collectively, the “2nd Closing Purchasers”; together with the 1st Closing Purchaser, each a “Purchaser,” and collectively, the “Purchasers”) on June 11, 2021. With respect to the Company’s plan to transform its current business into a blockchain related business, the Binding Term Sheet sets forth that the Company will engage the Consultants to assist with the Business Transformation through entering into consulting agreements with each of them prior to the execution of certain definitive transaction agreements (the “Definitive Agreements”). As consideration for the services to be rendered by the Consultants, the Company will issue to Natural and Mr. Ni Ming warrants to purchase an aggregate of 14,000,000 and 2,000,000 of the Company’s newly issued ordinary shares, par value US$0.0001 per share (the “Ordinary Shares”), respectively, upon the completion of the transaction with the 1st Closing Purchaser. The warrants to be issued to Natural will be divided into four (4) tranches, each with an exercise term of ten (10) years from the date on which such warrant becomes exercisable. Each of the 4 tranches of warrants has an exercise price of US$1 per share, US$1.5 per share, US$2.5 per share and US$2.5 per share, with condition that the closing price of the Ordinary Share equals or exceeds US$2.5, US$3.5, US$5 and US$6 per share for five (5) consecutive trading days. The warrants to be issued to Mr. Ni Ming will have an exercise term of five (5) years upon their issuance and their exercise price will be determined based on market p...