The board of directors of Grown Up Group Investment Holdings Limited announced that, on 6 April 2022 (after trading hours), the Company entered into a non-legally binding memorandum of understanding with Ace Corporation Limited in relation to the possible strategic cooperation in respect of the development and promotion of the metaverse (Possible Cooperation'). The MOU shall be valid for a period of twelve (12) months from the date of signing, during which time the parties shall use their commercially best efforts to negotiate in good faith and enter into a definitive and binding agreement within six (6) months of the execution of the MOU. The terms and provisions of the Possible Cooperation shall be subject to the Formal Agreement.

The Group is principally engaged in the designing, developing, manufacturing and selling bag and luggage products catered to kid, teen, sports, leisure, business, travel and technical segments. The Group continues to explore opportunities to expand its business scope. The Group is exploring a possibility in developing a metaverse platform focusing on Asian and Chinese culture and art to host events and exhibitions in the virtual world.

It is intended that the Group's metaverse will allow users of Ace's “Ouction'' platform to display and share their NFTs in its virtual exhibition rooms and galleries. The Board considers that the Possible Cooperation pursuant to the MOU provides a framework within which the Company and Ace may cooperate with each other on developing and trading NFTs, facilitates the Group's further broadening of its business scope and allows the Group to quickly tap into the new market opportunities towards the formation of a metaverse ecosystem. Having considered the above, the Board is of the view that entering into the MOU is in the interest of the Company and its shareholders as a whole.

The MOU does not constitute any legally binding commitment in respect of the Possible Cooperation, save and except that each party agrees to be legally bound by certain confidentiality, notices, and governing law provisions pursuant to the MOU. The Possible Cooperation is subject to the negotiation and execution of the Formal Agreement between the parties, if entered into.