PLBY Group (PLBY) shares advanced over 32% in recent Thursday trading after the company reported a strategic partnership with Byborg Enterprises, a privately held online entertainment company.

The owner of Playboy said Byborg has agreed to buy 14.9 million newly issued PLBY shares at $1.50 per share, for a total purchase price of $22.35 million. The parties expect to close the deal Nov. 8.

The companies also signed a non-binding letter of intent to negotiate a definitive agreement for Byborg to license certain Playboy digital intellectual property and operate certain Playboy digital businesses.

The LOI includes $20 million in annual minimum payments to PLBY over the initial 15-year term for $300 million and a profit share based on performance, the firm said. They expect to enter into definitive agreements prior to year-end.

Price: 1.10, Change: +0.27, Percent Change: +32.79