Innovative Pharmaceutical Biotech (HKG:0399) said it has entered into a non-binding memorandum of understanding to acquire the full equity interest in a Cayman Islands entity that will hold blockchain assets developed by Hong Kong-based Conflux, according to a Monday Hong Kong bourse filing.

The deal, signed June 30, is contingent on the new entity first completing its acquisition of the Conflux assets. Consideration will be determined in a formal agreement and may involve cash, shares, convertible bonds, or a mix of the three.

Northwestern Foundation, chaired by Innovative's executive chairman Yeung Yung, is setting up the new entity. Conflux is fully owned by executive director Wu Ming, the filing said.

Innovative said the move is part of efforts to expand into digital innovation and diversify revenue. The exclusivity period under the MOU is 12 months, and no binding agreement has been signed yet.