BC Technology raised 700 million yuan from cryptocurrency investor Liu Shuai

Source: Hong Kong Economic Times Editor: Techub News-June

The parent company of OSL, a virtual asset trading platform licensed by the Securities and Futures Commission, was suspended before the market opened on Monday (13th), pending the release of inside information. BC Technology announced on the same day that it will sell a 90% stake in Shanghai Jingwei Enterprise Development, which manages properties in the Shanghai Business Park, for a consideration of RMB23 million (approximately HK$24.6 million), to be repaid in cash. However, BC Technology continued to suspend trading and announced that it would publish an inside information announcement regarding the issuance of the company’s new shares.

BC Technology announced after the market closed on Tuesday (14th) that it will issue 187.6 million new shares to BGX, a cryptocurrency investor Liu Shuai, equivalent to about 42.79% of the existing share capital, at a price of 3.8 yuan per share, a discount of about 22.76% from 4.92 yuan before the suspension, and the allotment is expected to raise 713 million yuan, and the net amount after deducting expenses is expected to be 710 million yuan, and trading will resume on Wednesday (15th).

In the future, Liu Shuai’s shareholding was slightly higher than that of Gao Zhenshun

BC Technology’s major shareholders and industrial shell kings Gao Zhenshun and Lo Kin Bang’s East Harvest shares will be diluted from 42.77% to 29.96%, while Liu Shuai’s future shareholding will reach 29.97%.

BC Technology said that about 43% of the net proceeds will be used for potential mergers and acquisitions of digital asset and blockchain platform companies, about 29% will be used to develop digital asset platform technology, about 14% will be used to meet capital requirements, and about 14% will be used for general working capital.

Liu Shuai intends to nominate two people to the board

Liu Shuai is the founder of Shenzhen Qianhai Junchuang Fund, a mainland equity investment company, and the founder of Foresight Ventures, a cryptocurrency investment institution.

The announcement mentioned that Liu Shuai plans to nominate BGX CEO Pan Zhiyong and Yang Chao as executive directors of BC Technology.

BC Technology said that its wholly-owned subsidiary originally held a 90% stake in Shanghai Jingwei Enterprise Development. Shanghai Jingwei Enterprise Development was established in 2014 in mainland China, engaged in business park management and other businesses. At present, the target company leases the property to the landlord and subleases it to a single tenant who operates a co-working space under the name We Work.

BC Technology Shanghai managed properties are now sublet to WeWork

The net profit after tax of the target company in 2022 was approximately RMB9.69 million (RMB, the same below). As at the end of September, the net asset value of the target company was about $38.5 million, and the net asset value excluding intangible assets was also $25.7 million.

BC Technology said that the sale of the target company’s equity is to invest more resources in the digital asset and blockchain platform industry as the company’s growth focus and core business. BC Technology expects the disposal to record a pre-tax loss of RMB18.5 million (approximately HK$19.8 million), mainly reflecting the difference between the net asset value and the disposal consideration.