China Best (00370) said the memorandum of understanding regarding its intention to acquire the issued share capital of a company was expired as the parties were unable to agree or execute formal legal documents for the possible acquisition.
The company believes the expiry of the MOU has no material adverse impact on its business operation and financial position.
Through its wholly owned subsidiary, the target company carries out cartoon and comics-related businesses, licensing of its comics brand and the sales of children's clothing and articles in the People's Republic of China.