TCTM Kids IT Education (VSA) said Tuesday it has signed a nonbinding letter of intent to acquire HopeAI, which specializes in clinical development.

TCTM will buy HopeAI in exchange for a certain amount of its own restricted class A shares.

The company said the deal is subject to due diligence investigations by the relevant parties and the execution of a definitive share purchase agreement, among other things.

TCTM shares were up 7.3% in recent premarket activity.