Stocks | Digital Domain Group To Buy Qingzhan International AI For HK$20 Million

Digital Domain Group (02350) said its wholly owned subsidiary will acquire all the equity of Qingzhan International Artificial Intelligence from three sellers for an initial HK$20 million, payable through the issue of about 30.53 million consideration shares at HK$0.655 each, according to ETNet. The issue price represents a discount of about 5.07% to the previous trading day's close, and the initial consideration shares will account for about 3.4% of the enlarged share capital. The initial price may be adjusted under a performance mechanism to as much as HK$30 million, in which case up to 45.8015 million shares would be issued, representing about 5.0% of the enlarged share capital. Under the agreement, the sellers must guarantee that the target group will generate consolidated revenue of at least HK$14.98 million in the period from July 1, 2026 to June 30, 2027. The agreement also sets limits on consolidated losses, net assets and external liabilities, with compensation required if the targets are not met.