Apparel maker Virtual Mind (HKG:1520) signed a letter of intent with Shenzhen Xiaowan Sports Culture to invest 3 million yuan in the latter, according to a Tuesday Hong Kong bourse filing.
The investment will be through a capital injection and will represent at least 34% equity interest in the target.
Shenzhen Xiaowan Sports Culture is the legal entity and sole initiator of the Hunanese Football Team in the Greater Bay Area.
The company believes the parties can jointly create a sports IP belonging to the Hunanese in the Greater Bay Area through the investment, by collaborating with the company's other sports IPs.