Company: FVN
Filing Date: 2025-05-02
Form Type: S-4
Source: 0001829126-25-003304
Chunk: 195

Company: Future Vision II Acquisition Corp.
Filing Date: 2025-05-02
Form: S-4
Chunk 195
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 legal due diligence on VIWO and its business operations. Future Vision’s board of directors also engaged King Kee Appraisal and Advisory Limited (“KKG”) to investigate VIWO and provide an independent analysis on the fair value of 100% equity interest of VIWO as at September 30, 2024. The Future Vision board expressed concern regarding the 2024 decline in VIWO’s Martech business, particularly given the acknowledged industry growth trend and anticipated increase in competitive pressures. VIWO clarified that this decline was a strategic initiative, representing a deliberate shift away from certain client base generating annual revenue less than $1 million RMB to prioritize the development and service to “high quality” customers. VIWO’s strategic realignment was undertaken in response to heightened market competition and prevailing economic uncertainties in 2024 (which VIWO saw caused decreased digital marketing spending by its potential customers). VIWO asserted that this customer-centric approach, while recognized as potentially impacting short-term financial results, was implemented to optimize long-term value creation. In its due diligence, Future Vision discovered that VIWO had indeed significantly decreased low revenue generating customers in 2024 and increased large customers.

In the next few days, a series of due diligence conference calls and meetings took place between Future Vision and VIWO management. During this period of time, Future Vision conducted due diligence review of the materials and information provided by VIWO, and had a series of internal discussions. Future Vision also had a series of conference calls with VIWO management regarding issues identified in the due diligence and the proposed merger.

Following the due diligence review, Future Vision believed that the proposed Business Combination with VIWO would be a feasible transaction.

On November 25, 2024, KKG reported to the Future Vision board of directors on its valuation of 100% equity of VIWO. Shortly thereafter, Future Vision reached out to VIWO to further discuss the results of the valuation and to narrow down on a definite valuation for 100% of VIWO equity interests. Because the valuation report provided a valuation consistent with the preliminary valuation range proposed by the Future Vision board, VIWO accepted the proposed $100 million equity valuation. Shortly thereafter, the parties reached agreement on the terms of the LOI and entered into the LOI regarding a proposed business combination between Future Vision and VIWO. The terms of the final LOI include, among others, (i) $100 million for 100% equity interest of VIWO, subject to further due diligence, (ii) agreement that a draft of the income statement as aud