02:18 PM EDT, 03/23/2026 (MT Newswires) -- (Updates with recent stock movement in headline and first paragraph.)

Playboy (PLBY) shares were up 2% in afternoon trading on Monday after the company said it closed the initial sale of 16.67% of its China joint venture to UTG Brands Management under a transaction plan to ultimately sell 50% of the JV to UTG.

Under the deal, UTG will now oversee Playboy's business activities in China, Hong Kong, and Macau, the company said.

The company said it received $15 million for the initial closing, which it used to clear its senior secured debt. It also received a $4 million brand support payment as well as guaranteed minimum JV distributions.

Playboy will receive the remaining $30 million for UTG's acquisition of an additional 33.33% JV stake and a further $6 million in brand support payments by January 2028. Also, minimum of $62 million in JV distributions will be paid to the company through 2033, according to a statement.

The forthcoming proceeds will be used for debt reductions as well, according to the company.

Price: 1.80, Change: +0.03, Percent Change: +1.99