Phancy Group to Invest in Huanxi Media, License AI Technology
Phancy Group (HKG:6682) agreed to build a 14% stake in Huanxi Media Group (HKG:1003) as part of a broader cooperation agreement, according to a Wednesday filing with the Hong Kong bourse.The AI firm plans to subscribe to 731.3 million Huanxi shares priced at HK$0.275 each, representing 14.30% of Huanxi's enlarged share capital.The subscription comes as both sides explore utilizing Phancy's AI technology in the film and television sectors.The firm said it will provide Huanxi Media with $20 million worth of AI tokens as part of a two-year large model API services agreement. Huanxi Media is required to prepay Phancy for the tokens.The framework agreement is expected to yield at least $200 million in service fees to Phancy Group within three years of taking effect, the company said.Huanxi shares were up nearly 15% in pre-market trade, while Phancy fell around 1%.
