Iao Kun Group Holding Company Limited (NasdaqGM:IKGH) entered into an agreement to acquire 51% stake in Guangzhou Liniu Network Technology Co. Ltd. From Tangshan Jiaheng Industrial Co., Ltd. for $66.6 million on February 7, 2017. As consideration for the acquisition, Iao Kun Group Holding Company will issue 12.484 million ordinary shares upon the transaction's closing, as well as cash consideration that is contingent upon LiNiu Network achieving after-tax income targets. As part of the transaction, Iao Kun Group Holding Company will pay $0.8 million if LiNiu Network achieve equal to or in excess of the after-tax income is $2.9 million in 2017, will pay $3.1 million if the LiNiu Network achieve equal to or in excess of the after-tax income is $11.6 million in 2018, , will pay $11.8 million if the LiNiu Network achieve equal to or in excess of the after-tax income is $43.6 million in 2019, will pay $19.7 million if the LiNiu Network achieve equal to or in excess of the after-tax income is $72.7 million in 2019, will pay $27.5 million if the LiNiu Network achieve equal to or in excess of the after-tax income is $101.7 million in 2020, will pay $62.9 million if the LiNiu Network achieve equal to or in excess of the after-tax income is $232.6 million in 2021. For example, if the aggregate after-tax income target is met after the fifth year, the aggregate cash payment will be $62.9 million, even if all of the other after-tax income targets from 2017-2020 were not met. On closing Iao Kun Group board of directors will consist of nine persons two of which shall be appointed by the shareholders of Jia-Heng. Lam Chou In Iao Kun Group has been promoted to Co-Chief Executive Officer. Mr. Wang Shun Yang has been appointed as Co-Chief Executive Officer and as a director of the Board and will be responsible for Iao Kun Group Chinese technology industry development. Mr. Fong Weng Nam has been appointed as Iao Kun Group new Chairman of the Board of Directors. Mr. Lam Man Pou has resigned as Chairman and director of Iao Kun Group Board of Directors, and Mr. Vong Hon Kun has resigned as Chief Executive Officer and director of the Board. Both Mr. Lam and Mr. Vong will remain as Chief Marketing Officer and Chief Operating Officer of Iao Kun Group respectively. The acquisition is expected to close in the first quarter of 2017. Iao Kun Group Holding Company Limited (NasdaqGM:IKGH) completed the acquisition of 51% stake in Guangzhou Liniu Network Technology Co. Ltd. from Tangshan Jiaheng Industrial Co., Ltd. on March 1, 2017.