Megalogic Technology Holdings Limited (SEHK:8242) entered into a memorandum of understanding to acquire Easy Loan Finance Limited on May 23, 2014. Megalogic Technology will acquire 2 million shares representing 100% equity of acquire Easy Loan Finance Limited and the shareholder's loan. An amount of HKD 0.15 million will be paid for the equity interests and is subject to upward or downward adjustment based on the audited net asset value less the shareholder's loan of Easy Loan Finance Limited.

Under the terms, an initial consideration of HKD 0.015 million, representing 10% of the equity consideration was paid. Megalogic Technology will pay HKD 0.06 million representing 40% of the initial consideration on entering into the formal sale and purchase agreement and the remainder of the final consideration within five days after completion. The total consideration for the equity interests should not be more than HKD 0.2 million.

The deal is subject to consummation of due diligence and entering into definitive agreement for the deal. If the acquisition is terminated or rescinded, the vendor shall refund the deposit to Megalogic Technology without interest within five business days and if the vendor is in breach of the terms, vendor shall refund the deposit without interest within five business days to Megalogic Technology.