Branding China Group Limited (BC Group) (00863.HK), a Hong Kong-listed company and parent company of ANXONE and OSL, entered into subscription agreements whereby BC Group will sell 22,876,360 shares to subscribers at a price of HK$5 per share. The total gross subscription is approximately HK$114 million, which would be used for off-set of outstanding obligations and recurring monthly expenditure of BC Group.
The placing price represents a discount of 14.24% to the closing price of HK$5.83 per share quoted on 27 May 2019, and a discount of 14.53% to the average closing price of HK$5.85 per share quoted for the five trading days immediately preceding the announcement.
Commenting on the placement, Mr. Ken Lo, Chief Executive Officer and Executive Director of BC Group, said, “BC Group’s digital asset and blockchain technology related businesses have seen strong growth in recent months. We have secured new clients across all three business lines: ANXONE Exchange (digital asset exchange), ANXONE Technology (white-label digital asset exchange solutions) and OSL (digital asset brokerage). This year, we launched ANXONE Custody with our partner Aon, the largest insurance broker in the United Kingdom. ANXONE Custody is an insured custody service for digital assets which delivers military grade security protocols and provides coverage in the case of loss or theft of digital assets. The service addresses the needs of investment funds, exchanges and mining companies which hold a large volume of digital assets.”
Mr. Steve Zhang, Chief Financial Officer of BC Group, added, “The share placement will broaden the BC Group’s shareholder base and strengthen our capital structure for future growth. The evolution of our strategic direction and development plan have been well received by our shareholders.” On 16 May 2019, shareholders of BC Group approved the change of company name to ‘‘BC Technology Group Limited’’.