TechFlow news — On August 19, according to AASTOCKS, Sino-Heat Technology (01611.HK) announced the acquisition of all issued shares of Avenir Asset Holding for a consideration of approximately USD 30.46 million (approximately HKD 238 million). The company will settle the payment by issuing up to nearly 110 million new shares. Avenir Asset Holding indirectly holds about 84.62% of the issued shares of BitTrade. Additionally, the company has agreed to acquire approximately 7.69% of BitTrade's issued shares from Goldenway for USD 2.77 million (approximately HKD 21.6 million), to be settled by issuing up to 9.91 million new shares. The total number of consideration shares issued will account for approximately 20.33% of the enlarged share capital of the company. The issue price is set at HKD 2.18 per share, representing a premium of about 14.14% over the closing price of HKD 1.91 on last Friday (August 16).
Upon completion, Avenir Asset Holding will become a wholly-owned subsidiary of the company, and BitTrade will become an indirect subsidiary of the company. BitTrade is primarily engaged in cryptocurrency trading business and is a licensed virtual currency exchange service provider in Japan. The registration of BitTrade has no expiry date and therefore does not require renewal. BitTrade has joined three self-regulatory organizations officially recognized by Japan’s Financial Services Agency, which possess the authority to establish and enforce rules and standards for cryptocurrency transactions in Japan, and can facilitate the introduction and development of Japan's security token system. BitTrade is also a member of two Japanese cryptocurrency industry associations.
In addition, to support the issuance of consideration shares upon the proposed acquisition, update the plan authorization limit, and provide additional flexibility for the company to issue new shares for future investments and development, the company proposes to increase its authorized share capital from HKD 500,000 (divided into 500 million shares) to HKD 700,000 (divided into 700 million shares) by creating an additional 200 million new shares. The new shares, upon issuance and full payment, will rank pari passu with existing shares in all respects.
