Eshallgo (EHGO) is set to receive up to $20 million in equity investment in tranches from CS Asia Opportunities Master Fund, the companies said Friday.
Under their securities purchase agreement, CS Fund will buy up to about 4.2 million shares of Eshallgo at $4.80 per share in tranches, the companies said.
The equity investment will provide a foundation for Eshallgo's entry into Tencent's business ecosystem, the companies said.
Eshallgo will use "Tencent's resources to explore new models and opportunities in the office and cloud gaming sectors," according to the joint statement.
Eshallgo shares were down more than 10% in recent trading.
Price: 4.33, Change: -0.58, Percent Change: -11.73
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