CoAssets Limited (ASX: CA8), an online crowdfunding platform based in Singapore, announced it has entered into a conditional Sale and Purchase Agreement (SPA) to sell the 21.6% interest that it currently owns in Fintech Pte Ltd (FPL) as well as a further 5.4% interest to be acquired within the next month (27% in total) to Atlas Culture Entertainment & Media Investment Limited (ACEMIL).
According to CoAssets, the sale will be in a form of share swap which involves the transfer of 6,480 shares in FPL to ACEMIL, for consideration of 39,690,000 shares in ACEMIL at a deemed issue price of HK$1 per share. Subsequent to the above share swap taking effect, CoAssets shall continue to provide technical support to FPL for a period of 2 years (Proposed Transaction). In the event the 39,690,000 shares in ACEMIL do not realise a value of HK $39.69 million or more within 2 years from the date of the SPA, CoAssets has the right to buy back the 6,480 shares in FPL from ACEMIL in return for the transfer of the 39,690,000 shares in ACEMIL to ACEMIL ’s parent company, Advance Jade.
“ACEMIL intends to operate a financial, investment and fund businesses in Hong Kong and Greater China which is in sync with the One Belt One Road initiative of China. It aims to introduce international inves tors and fund managers to invest in suitable assets in China and along One Belt One Road countries. It also intends to operate gold procurement, gold and silver jewellery sales business on the global basis except for China, internet micro – credit and consu mer finance business in China, and culture entertainment and media platform with various businesses including but not limited to film production, investment and distribution, original internet and media contents, online media and marketing services.”
CoAssets went on to reported that the carrying value of FPL on its balance as of December 31, 2017 is S$4.87 million and is estimated to increase to S$5.68 million on the acquisition of the further 5.4% interest in FPL. The value of 39,690,00 shares in ACEMIL is deemed to be the equivalent of S$6.715 million. Speaking about the Proposed Transaction, CoAssets Executive Chairman, Getty Goh, added:
“Conclusion of the transaction will see CoAssets continue to provide technical support to FPL hence business is as usual from CA8’s perspective. FPL being amalgamated into a larger conglomerate may also translate to better trading conditions for FPL and value creation for CoAssets shareholders.”