The Transaction marks FingerMotion's formal entry into the enterprise computing market and is the first step in a broader strategy to build a recurring-revenue enterprise compute franchise alongside the Company's existing mobile data and telecommunications operations.

At final closing, FingerMotion shall issue to Alset AI 1,674,480 FingerMotion restricted common shares determined by dividing $500,000 by the sum of (i) the Nasdaq Official Closing Price of one FingerMotion common share on the trading day immediately preceding the closing date and (ii) $0.01, with any fractional share rounded down to the nearest whole share. The FingerMotion shares are to be issued in a private placement transaction, exempt from registration, under Section 4(a)(2) of the Securities Act of 1933, as amended. No cash consideration is payable by FingerMotion at closing. Following closing, Alset AI is expected to retain 90.1% of Lyken.

A Pivotal Step into Enterprise Computing

"This is a deliberate and intentional pivotal move for FingerMotion," said Jolie Kahn, Chief Executive Officer of FingerMotion. "For a decade the Company has operated at the intersection of telecommunications infrastructure and data at enterprise scale. Enterprise computing is the natural extension of that capability, and it is where we intend to build the next phase of this Company. Compute has become the constraint on what enterprises can actually deploy — not ambition, not talent, but access to capacity that is available, governed and supportable. Lyken gives us a real operating platform to serve that need, and this investment is the starting point in this journey."

The Company intends to pursue enterprise compute as a distinct and scalable line of business, with the objective of moving from an initial minority position toward a larger participation in Lyken and in the underlying infrastructure that supports it, subject to commercial performance, capital availability and applicable regulatory and Exchange requirements.

How FingerMotion Intends to Serve the Enterprise Compute Segment

Enterprise buyers of AI and cloud compute are consistently underserved by the two dominant supply models available to them: hyperscale platforms that are difficult to secure allocation from and inflexible on terms, and bare-metal GPU brokers that deliver hardware but not accountability. FingerMotion's strategy is to serve the segment in between — the enterprise that requires committed capacity, a named counterparty, and a professional operating partner that can carry the deployment through to production. The Company intends to build that offering across five components:

  • Contracted capacity, not speculative build. Through Lyken, FingerMotion gains access to an established vendor and supply ecosystem — including previously disclosed relationships with NVIDIA, Dell Technologies Canada and established data-center providers — allowing the Company to offer enterprise customers GPU and cloud compute capacity without first committing balance sheet to greenfield construction. Capacity is contracted against demand rather than built ahead of it.
  • A managed service, not a hardware rental. The Company's intended offering spans compute, secure storage, private low-latency networking and enterprise deployment support, delivered as an integrated service with defined performance and support obligations. FingerMotion believes the enterprise segment will consolidate around providers that take responsibility for the outcome, not only for the instance.
  • Telecommunications-grade operating discipline. FingerMotion's core business is built on carrier-grade systems where uptime, throughput, provisioning and settlement are contractual obligations measured in real time. The Company intends to apply the same operating discipline — service-level accountability, capacity planning, and transaction integrity at volume — to enterprise compute delivery.
  • Distribution through existing enterprise and carrier relationships. FingerMotion expects to introduce enterprise compute and AI infrastructure services into its existing commercial channels and enterprise relationships, and to explore joint go-to-market activity with Lyken across both companies' networks. The Company also intends to evaluate opportunities where its own data and analytics workloads can be run on the platform, aligning internal demand with third-party capacity.
  • Cost of power as a source of durable margin. Compute economics are ultimately energy economics. FingerMotion intends to prioritize capacity sourced from low-cost, reliable and, where available, behind-the-meter power configurations, on the view that long-term competitiveness in enterprise compute will be determined by delivered cost per kilowatt-hour as much as by hardware generation.

     

"We are not trying to out-build the hyperscalers," added Ms. Kahn. "We are building the layer the enterprise market is actually asking for — capacity that is contracted, connectivity that is private and predictable, deployment support from people who have run production systems, and a cost base anchored in power we can price over the long term. We believe those four factors are what turn a pilot into a production workload, and that is the segment we intend to fulfill."

Transaction Highlights

  • Strategic entry point: FingerMotion becomes a strategic minority shareholder in an operating enterprise cloud compute business, with the stated intention of expanding its participation over time.
  • Capital efficiency: Consideration of $500,000 is payable entirely in FingerMotion equity. No cash consideration is payable at closing, preserving the Company's liquidity for commercial deployment.
  • Aligned counterparty: Alset AI is expected to retain 90.1% of Lyken and will hold FingerMotion common shares following closing, aligning both companies to the growth of the platform.
  • Established commercial platform: Lyken's previously disclosed ecosystem includes NVIDIA, Dell Technologies Canada and established data-center providers, supporting GPU compute, secure storage, private networking and related enterprise services.
  • Existing enterprise traction: Lyken has a previously announced cloud compute services relationship with a leading multinational technology and telecommunications company.