V2Y (SGX:V2Y) entered into a non-binding memorandum of understanding with Urban Exchange for the take over of coffee shops at 603 Clementi West Street in Singapore for SG$580,000, according to a filing with the Singapore Exchange on Friday.

The potential acquisition is part of the group's strategy to diversify into the food and beverage industry as the company looks to create additional revenue streams, the filing said.

The company will now look to seek shareholders approval for the acquisition during an extraordinary general meeting, the company said.