Metalpha Technology : Cessation and Proposed Sale of the Mainland China Business – Form 6-K

Termination and Proposed Sale of the China Business

On January 20, 2023, the board of directors (the “Board”) of Metalpha Technology Holding Limited, an exempt company incorporated and existing under the laws of the Cayman Islands (formerly known as Dragon Victory International Limited, the “Company”) , unanimously approved the Company’s plan to cease and desist all business operations in Mainland China (collectively, the “Mainland China Business”) conducted by the Company through its subsidiaries and variable-interest entities, and to dispose of the Mainland China business by selling it to one or more third parties. The Board noted that the Mainland China business has been and continues to be conducted with tremendous difficulty and uncertainty in a challenging economic environment. Accordingly, the Board determined that the discontinuation and proposed sale of the Mainland China business would be in the best commercial interests of the Company and would allow management to focus on growing the Company’s digital asset-related business outside of China .

Amendment to Material Definitive Agreements

On August 6, 2021, the company entered into a certain consulting and warrant issuance agreement (the “consulting agreement”) with Natural Selection Capital Holdings Limited, a Cayman Islands company (the “consulting company”), and Mr. Ming Ni (“Mr. Ni,” and together with the Consulting Company, the “Consultants”). Pursuant to the Consultant Agreement, the Consultants agreed to provide certain services to the Company in connection with the Business Transformation (as defined in the Consulting Agreement), and the Company agreed to (i) issue warrants to the Consulting Company in four equal parts to purchase a total of 14,000,000 Ordinary Shares (the “Consulting Company Warrants”) and (ii) warrants to Mr Ni to purchase a total of 2,000,000 Ordinary Shares (the “Ni Warrants”). The Consulting Company Warrants will become exercisable on the later of (i) the one-year anniversary of the issuance and (ii) the applicable Vesting Dates (as defined in the Consulting Agreement) and will expire on the 10th anniversary of the date they become exercisable (the “Advisory Company Warrant Expiration Dates)”. -warrants will become exercisable once issued and will expire five years after issuance.

On January 26, 2023, the Company and the Consultants entered into an Amendment Agreement to the Consulting Agreement (the “Amendment Agreement”), to change each of the Consultants’ Company Warrant Expirations to August 6, 2031.

The foregoing description of the Consultation Agreement and the Amendment Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Consultation Agreement and the Amendment Agreement, which are hereto held as Exhibit 10.1 and Exhibit 10.2 and incorporated herein by reference.