MultiMetaVerse Holdings Limited (Nasdaq: MMV) Enters Into Debt Conversion Agreement with Gaea, and Term Sheets With PIPE Investors

NEW YORK and SHANGHAI, Sept. 12, 2023 /PRNewswire/ -- MultiMetaVerse Holdings Limited (the "Company"), an animation and entertainment company for young consumers in China, announced today that it has entered into a series of debt transfer agreements and debt conversion agreements with Gaea Holdings Inc. ("Gaea"), controlled by Mr. Yanzhi Wang, who is the beneficiary owner of 47.3% Class A Ordinary Shares of the Company and acts in concert with the Company's controlling shareholder, Mr. Yiran Xu. Pursuant to these agreements, all the principals and accrued interests owed by the Company and its subsidiaries to Gaea's related parties of an aggregate amount of US$7,003,834 ("Aggregate Outstanding Debt") shall be transferred to Gaea. At a later time to be determined by the parties, the Aggregate Outstanding Debt shall be converted into 6,309,760 Class A Ordinary Shares of the Company (including 1,961,914 Class A Ordinary Shares issuable to Gaea Holdings Inc. and 4,347,846 Class A ordinary Shares issuable to Avatar Group Holdings Limited) at a per share price of US$1.11, which is the average closing price over the last twenty trading days as of September 11, 2023. The debt conversion will reduce the Company's gearing ratio and future cash out flows relating to financing activities.

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