mm2 Asia Ltd. Subsidiary Receives S\$6.32 Million Letter of Demand: What Investors Need to Know

Key Points from the Announcement

• mm2 Entertainment Pte. Ltd. (mm2E), a subsidiary of mm2 Asia Ltd., has received a Letter of Demand from solicitors representing Mr. Yi Xianhuang.
• The Letter of Demand alleges that mm2E owes an aggregate amount of S\$6,324,074.88 under various investment agreements relating to movie productions and a refundable deposit for a television series.
• The payment deadline is 9 January 2026. If payment is not made by this date, Mr. Yi may initiate legal proceedings against mm2E.
• The Board has stated that it will make further announcements regarding any material developments, indicating that the situation is still evolving.

Important Information for Shareholders

• This demand for S\$6.32 million is substantial and may have a significant impact on the financial position of mm2 Entertainment and, by extension, mm2 Asia Ltd.
• The possibility of legal action if the demand is not met raises uncertainty, with potential reputational and financial risks for the Group.
• The announcement specifically advises shareholders and potential investors to exercise caution when dealing in the company’s securities and to avoid taking any action that could be prejudicial to their interests until more information is available.
• Investors are encouraged to consult their professional advisers (stockbrokers, bank managers, solicitors) if they have any doubts about what actions to take in light of this development.
• This issue could be material and price-sensitive, as it affects both the company’s cash flows and risk profile. The outcome of this demand—and any subsequent legal proceedings—could potentially influence mm2 Asia Ltd.’s share price.

Detailed Summary

On 28 December 2025, mm2 Entertainment Pte. Ltd., a subsidiary of mm2 Asia Ltd., received a formal Letter of Demand from solicitors acting for Mr. Yi Xianhuang. The letter claims that mm2E owes a total of S\$6,324,074.88 under various investment agreements related to film productions, as well as a refundable deposit for a television series. The demand stipulates that full payment must be made by 9 January 2026. If mm2E does not comply, Mr. Yi may commence legal proceedings without further notice.

The Board of Directors of mm2 Asia Ltd. has responded by pledging to keep shareholders and investors informed of any material developments. In the meantime, the Board has issued a caution to shareholders, warning them to be careful in their dealings with the company’s securities and to seek professional advice if uncertain about next steps. This indicates that the situation is potentially serious and could have implications for the company’s financial health and share value.

With the possibility of a multimillion-dollar legal claim and the risk of litigation, this matter is likely to be closely watched by the market and could result in volatility for mm2 Asia Ltd.’s stock. Investors should remain vigilant and await further updates from the company.

Disclaimer

The information above is based on a company announcement dated 31 December 2025. Investors are advised that developments regarding the Letter of Demand and any subsequent legal proceedings may materially affect mm2 Asia Ltd.’s financial position and share price. This article is provided for informational purposes only and should not be construed as financial advice. Please consult your own professional advisers before making any investment decisions.

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