In addition to the equity investment, FiEE will provide a zero-interest convertible loan of up to approximately $2.9 million to Yinlian Culture, bringing the total investment to around $3 million. The loan will be disbursed in three tranches, contingent upon the achievement of specific performance targets by Yinlian Culture, including positive consolidated net profit after tax within six months of the agreement.
The Investment Agreement also includes provisions for a Shareholder Agreement that outlines the governance structure and rights of the shareholders, ensuring that FiEE will have significant control over Yinlian Culture's operations. The closing of the equity investment is expected to occur in April 2026, upon which FiEE will gain 51% of the equity interests and 60% of the voting rights in Yinlian Culture.
This strategic move is anticipated to position FiEE at the forefront of the global music revolution, leveraging Maltose Culture's expertise and resources to create a robust AI music ecosystem. The company aims to capitalize on the growing demand for AI-generated music content, with plans to release high-quality tracks and music videos in the coming months. By integrating these offerings into its existing cultural business portfolio, FiEE is poised for significant growth in the music industry, enhancing its competitive edge and expanding its cultural footprint.
