Ping Shan Tea Group Limited (SEHK:364) entered into a sale and purchase agreement to acquire a 10% stake in Kuandian Changbaishan Shizhu Wild Ginseng Development Company Limited from Zhou Chong for approximately HKD 120 million in cash and stock on June 29, 2016. Under the terms of the transaction, the consideration will be paid as HKD 70 million in cash and issue of 1 billion shares of Ping Shan Tea Group. For the year ending December 31, 2015, Kuandian Changbaishan reported revenues of HKD 13.8 million and profit after tax of HKD 8 million. The transaction is subject to duly establishment and completion of the WFOE and VIE structure, approval of the Board of Directors of Ping Shan Tea Group, consummation of due diligence investigation, listing approval, assessed value as per the valuation report being not less than HKD 1.8 billion. The transaction is not subject to approvals from PRC authority. Any dispute arising from or in relation to this agreement shall be submitted to the China International Economic and Trade Arbitration Commission for arbitration pursuant to the arbitration rules in effect at the time of the arbitration application. The transaction is expected to be completed on July 31, 2016. Currecny conversion of financials was done using www.oanda.com on December 31, 2015.