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Crazy Sports entered into MOU to partially dispose its equity interest in an associate, Bank of Asia

Crazy Sports entered into MOU to partially dispose its equity interest in an associate, Bank of Asia

Unlocking the potential value of its focused investment strategies

HONG KONG, Oct. 4, 2021 /PRNewswire/ -- Crazy Sports Group Limited ("Crazy Sports" or the "Company", together with its subsidiaries, the "Group", Stock code: 82) is pleased to announce that on 30 September 2021, the 45.5%-owned associate of the Group, Bank of Asia (BVI) Limited ("BOA"), its existing shareholders ("BOA Shareholders") and an investor ("Investor") entered into a non-legally binding memorandum of understanding ("MOU"), pursuant to which the Investor will acquire from the BOA Shareholders in aggregate 51% of the existing issued share capital of BOA; and in addition, the Investor and the BOA Shareholders will subscribe for new ordinary shares in BOA in the ratio of 51 to 49 for a total subscription price of USD100 million ("Proposed Transactions").

Since 2015, the Group has developed focused investment strategies, targeting to invest in or form alliances that give potential future returns to maximize corporate value, and at the same time, to drive innovation initiatives of the Group and to establish opportunities for further collaborations or achieve synergies. The management of the Group is of the view that the sale proceeds that may receive from the Proposed Transactions, if materialise, represent an opportunity for the Group to realise part of its investment from BOA, and enable the Group to re-allocate more financial resources on future potential investment opportunities or working capital for the Group's core businesses.

The Group will continue to be a passive investor of BOA upon completion of the Proposed Transactions. Being a licensed and regulated bank in the British Virgin Islands, BOA uses advanced digital channels to provide a wide range of cross-border financial services to its global clients. BOA plays a unique role in the development of the financial industry in BVI. It provides customers with services not limited to deposit, cross-border payment and remittance and other traditional banking services; in addition, BOA together with its global business partners also provides investment, wealth management, financial advisory and lifestyle services. Over the past 12 months, BOA has built a diversified client portfolio across 78 countries, with the number of clients grew over 300% and transactions processed increased over 10 times.

Recently, a business partner of BOA has soft-launched a new premium NFT platform (BOAX), supported by BOA Fin Tech Ecosystem. It allows users to trade rare digital assets online which focuses on collaborations with Master Artists, influential celebrities and unique virtual influencers with stories. NFTs are becoming the digital representation of physical art and objects, unleashing entirely different ways to create value for stakeholders, and paving the way to brand new entertainment markets.

In an interview conducted during 2021 World Internet Conference Wuzhen Summit, Dr Zhang Lijun, Chairman of the Group, said, "Some works conferring more landmark importance with their rarity being safeguarded in NFT structures, including the highly sought-after virtual art pieces and memorabilia cards featuring sports stars, are where the worthiness of collection holds and eligible for premium asking prices. Liquidity can be created for truly valuable collectibles with unique acquisition stories under the NFT sales environment." The Group has been adopting an open strategy on the road of developing its NFT business. The ongoing collaboration with BOA in exploring world markets will contribute positively to the Group's development.

Following the completion of the restructuring at the end of 2020, the Group is in full gear to develop the digital sports entertainment business and has established the ''Events + Quizzes, IP + Sports Games, Crazy Red Insights+ Lottery Sales'' trio-pillar growth engine. The Group is committed to diversify its digital mobile internet services in order to accumulate a wider range of loyal sports users through the Group's sports games and interactive information applications. Apart from focusing on the growth of its core businesses, the management will continue to make strategic investments with an aim to effectively allocate resources to maximize corporate value and implement the integration of its vast trove, such as users and technology edges, through strategic investments.

About Crazy Sports Group Limited

Crazy Sports Group Limited is a leading digital sports entertainment community operator and internet sports industry leader in China, and it is listed on the Main Board of HKEX (Stock code: 82). Laying our strategy on powering up China through sports, we dive deep into the trillions-worth digital + sports entertainment industry racetrack. Based on the unique massive sports user database, leveraging digital, artificial intelligence, and blockchain technology to empower traditional sports events, we operate in three core business areas pivoted on "Events + Quizzes, IPs + Sports Games, Crazy Red Insights + Lottery Sales". Our mission is "Let Sports Create Happiness", we are dedicated to building a multi-channel entertainment platform allowing real-time participation in sports events.

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