CoAssets Limited (ASX: CA8), a crowdfunding platform specializing in facilitating funding for real estate and small to medium-sized enterprises, announced on Thursday it has entered into a share sale and purchase agreement with Brigthen Management, Limited (BML), a member company of Styland Holdings Ltd (HK EX code: 211) and a Hong Kong main board listed company with a market capitalisation of more than HKD775 million. The funding portal revealed:
“Pursuant to the terms of the SSPA, CoAssets will (1) acquire a total of 2,500 fully paid ordinary shares, i.e. 25% of Brighten Finance Limited (BFL) over two equal tranches of 12.5% each in September 2017 and November 2017 for a total consideration of S$1.8million; (2) assume day-to-day management control of BFL at the end of the acquisition process; (3) settlement between the parties will be arranged separately depending on BFL hitting critical milestones.”
Julian So, Chief Business Development Officer and Co-Founder of Brighten Management Limited shared:
“We are pleased to partner with CoAssets, having worked with them for a period of time and witnessing CoAssets’ proven technology, evolving innovation and a world-class management team. Separately, at the current price, we think that CoAssets makes a worthwhile investment. That is why we are prepared to put our money where our mouth is, and underwrite two rounds of private placement for them. We are lucky that we are one of the first movers to spot this hidden gem. We are confident that with the right type of institution investors support, CoAssets will go far. Ultimately, we are confident that, together, Brighten Management Limited and CoAssets will benefit greatly from this strategic alliance and long-term working relationship”.
CoAssets also announced it has also embarked on a S.M.A.R.T. initiative providing an overarching framework to guide the company’s short-term to long-term growth plans. The key areas of the initiative are (1) Strategy, (2) Markets, (3) Acquisition, (4) Revenue and (5) Technology, with focus on two core expertise of funding and technology to further cement their position as market leaders in the region. As the S.M.A.R.T. initiative starts to take root, investors, lenders, and borrowers can rely on CoAssets to lend more, lend faster and more importantly lend safer. Getty Goh, CEO and Co-Founder of CoAssets added:
“I believe that regional expansion will be key for our long-term viability, having actively grown our presence beyond Singapore in the last few months. As our S.M.A.R.T. initiative starts to take root with key areas of technology and funding in our crosshairs, I believe we will be able to play a bigger role to serve the region’s “unbanked” communities and businesses, by offering them access to alternate financing solutions, anywhere and everywhere. As CoAssets is in the business of matching borrowers and lenders, the acquisition of BFL will give the Company a steady supply of secured borrowers. From our due diligence, we found that these secured borrowers are prepared to pay interests of more than 10% per annum. Ultimately, this investment will increase our market reach and assist us to achieve our financial objectives as we gradually transform into an online financial institution. This is a great win for our shareholders, partners, customers and employees.”
CoAssets went onto release its annual report of 2016/2017 and showed highlights, including:
Financial Performance
- 3,921% increase in revenue from China in the last 12 months
- 54% increase in interest income for corporate loans
- 1.46% corporate loan write off rate
- S$9.56 million corporate loan amount deployed to date
- S$5.45 million worth of corporate loans made in 2017H1, translated to interest income of S$965,000
User Achievement and Notable News
- 230,540 number of registered users as at 30 June 2017
- 347% increase in user numbers in the last 12 months
- 74.8% users from China
- 173,054 registered users from China
- 55,150 registered users from Singapore
- 2,337 registered users from Australia