PICO FAR EAST's subsidiary will acquire the remaining 40% equity interest of Infinity Marketing Team, LLC

According to the announcement released by PICO FAR EAST (00752) on the Zhitong Finance APP, under the operating agreement, Chad Michael Tons (Tons, as the sole legal and beneficial owner of the seller) was granted a put option to sell all (but not less than all) of the remaining 40% equity interest (remaining units) in the target company Infinity Marketing Team, LLC owned by himself and held by his affiliates and licensed assignees to the buyer Pico North America, Inc. (an indirect wholly-owned subsidiary of the company). The exercise period for the put option is from January 1, 2024 to December 31, 2028 at any time. The purchase price for the remaining units must be paid in cash, and the put option valuation will be calculated based on the mechanism set forth in the supplementary announcement. The board announced that on May 31, 2024, Tons issued a written notice of exercise (put option exercise notice) to the target company, exercising the put option to sell the remaining units to the buyer in accordance with the terms and conditions of the operating agreement as stated in the announcement (equivalent to his 40% equity interest in the target company). The purchase price is determined based on the put option valuation calculated according to the mechanism and formula set forth in the supplementary announcement. The purchase price is $31.318 million plus net cash and minus the target company's debt calculated at the end of the proposed transaction under the put option. Therefore, the expected purchase price is currently $30.701 million, to be paid in cash. After exercising the put option, the target company will become an indirect wholly-owned subsidiary of the company. It is reported that the target company is a company established in California, USA, engaged in market promotion activities and acting as an advertising agent: providing services to clients across the United States. The target company produces experiential events and provides services related to event execution, exhibition environments, mobile marketing tours, digital marketing, event decoration, and brand marketing strategies