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ESHALLGO INC Acquires D&K Asset Management: A Game-Changer for Cloud Gaming Sector

$EHGO
Form 6-K
Filed on: 2024-12-20
Source
ESHALLGO INC Acquires D&K Asset Management: A Game-Changer for Cloud Gaming Sector

Here are the key insights and important information extracted from the financial report (Form 6-K) of ESHALLGO INC:

  1. Company Overview:
  • Name: ESHALLGO INC
  • Location: No. 37, Haiyi Villa, Lane 97, Songlin Road, Pudong New District, Shanghai, China 200120.
  • SEC File Number: 001-42154
  • Reporting Period: For the month of December 2024.
  1. Acquisition Announcement:
  • On December 16, 2024, ESHALLGO INC entered into a share purchase agreement to acquire D&K Asset Management (HK) Limited and its subsidiaries, including Shenzhen Qianhai Huiying Technology Power Co., Ltd. and Hangzhou Qiaoxin Technology Co., Ltd..
  • The agreement involves the issuance of 4,000,000 Class A ordinary shares to the D&K Shareholders, valued at $1.98 per share, based on the closing price on October 4, 2024.
  1. Financial Terms:
  • ESHALLGO INC will pay a deposit of $100,000 to D&K or the D&K Shareholders within one business day from the date of the Agreement.
  • The shares will be issued on a pro-rata basis according to the equity holdings in D&K.
  • The issued shares will be subject to a 6-month lock-up period, during which the D&K Shareholders cannot sell or transfer their shares.
  1. Conditions for Share Cancellation:
  • If Qianhai Huiying and Qiaoxin do not meet specified milestones by January 15, 2024, ESHALLGO INC has the right to cancel 1,000,000 shares from the D&K Shareholders.
  1. Strategic Partnerships:
  • D&K and its subsidiaries have established partnerships with prominent companies, notably Tencent Technology (Shenzhen) Co. Ltd.
  • Two key agreements with Tencent include:
    • Cloud Game Console Product Cooperation Agreement: Focused on developing cloud gaming products and integrating gaming ecosystems.
    • Cross-Industry Cooperation Agency Agreement: Joint marketing and promotional activities targeting Tencent's user base.
  1. Future Collaborations:
  • Additional agreement with Beijing Liuli Ball Culture Development Co., Ltd. to introduce a cloud gaming mobile device supporting multiple services, including Microsoft and NVIDIA.
  1. Exhibits:
  • The full text of the share purchase agreement is included as Exhibit 10.1.
  • A related press release titled "EHGO acquired D&K Asset Management and worked with Liuli Ball Culture to draw a new blueprint for Tencent's business ecosystem" is filed as Exhibit 99.1.
  1. Incorporation by Reference:
  • The report is incorporated into the registration statements on Form S-8 (File No. 333-282173), enhancing its regulatory framework.

This acquisition and strategic partnership with Tencent reflect ESHALLGO INC’s commitment to expanding its footprint in the cloud gaming sector, indicating potential growth opportunities in a rapidly evolving market.