Troops (TROO) said Wednesday its Giant Connection unit signed a letter of intent with Jupiter Stone to buy a 49% stake in Y Concept, which is the parent company of The Cara Hotel in Malaysia.

Troops will pay for the acquisition using convertible notes, valued at 80% of either the closing share price at signing or the average closing price over the last 60 trading days, whichever is lower, the company said.

The agreement gives Jupiter Stone the option to sell the remaining 51% interest at a later date, and Troops has the right to repurchase the shares at the current market price, it said.

The deal is subject to due diligence, regulatory approvals, board approvals, and no significant adverse changes at Y Concept, according to the company.

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