Ping Shan Tea Group Limited (SEHK:364) entered into memorandum of understanding to acquire Guang Xin Da Technology Co., Limited from Zhang Lu for HKD 250 million on April 12, 2016. Under the terms of the transaction, consideration of HKD 250 million shall be settled in cash or by issue of convertible bonds which are convertible into the shares of the Ping Shan at the conversion price of not less than HKD 0.1 per share. The transaction is subject to entering into the formal agreement.

On July 12, 2016, it was announced that as Ping Shan Tea Group needs more time to complete the due diligence, the parties have entered into a supplemental letter on to extend the exclusivity period for three months from July 12, 2016 or such longer period as the parties may agree.