OKCoin CEO to acquire NEEQ company for ¥7.5 million
On 20th Dec, Huazhenglian (NEEQ:833166) announced that 54.66% shares of the company will be purchased by Star Xu at the cost of 7.5155 million yuan (1.08 million USD). Upon completion of the acquisition, Star Xu will become the dominant shareholder and the actual controller of the Company.
According to the announcement, Star Xu plans to acquire 3.0062 million shares of Huazhenglian Company at the price of 2.5 yuan per share, representing about 54.66% of the total shares . The acquisition values is about 7.5155 million yuan.
Star Xu has been widely known as the founder and CEO of OKCoin. Prior to OKCoin, he was the CTO of Docin, which is probably the largest Chinese document-sharing site at the moment.
The announcement also reveals Xu’s portfolios: 31 companies registered across the world. Some basic information like company name, registered capitals, business scope and his personal portfolios are publicized for the first time.
Statistics show that Star Xu is controller or shareholer of 14 tier 1 company, some of which are registered abroad. Since 2014, Star Xu has been titled as director for a total of 17 companies.
One of the company is Beijing Oukai Lianchuang Network Technology Co., Ltd.. It is mainly engaged in the provision of technical R & D support, marketing and system maintenance services for the virtual goods (Bitcoin / LETTY coins) trading websites operated by affiliated enterprises; the development of Blockchain technology, the registration of the company Capital of 50 million yuan.
Star Xu holds 56% stake in Beijing Oukai Lianchuag, and served as the company’s executive director and manager.
Another three companies that are registered in Hong Kong are: Hong Kong Sulian Technology Co., Ltd., Hong Kong Oukai Financial Technology Co., Ltd., Hong Kong Oukai Finance Co., Ltd.,. These 3 companies are engaged in cross-border payment platform operations, which are outside mainland China business.In addition, the business scope of companies registered in Singapore, the United Kingdom and other places are virtual goods trading services, but none of which has materialized.
The acquisition report does not rule out the possibility of injecting assets, and the injection of assets will most likely to be the OKCoin Exchange.
As disclosed in the report, Star Xu’s purpose of acquisition is quite straightforward:
“We would take advantage of the listed company platform to integrate resources, to broaden the existing business areas, to actively explore new business models, to look for new profit growth, to raise the company’s profitability and enhance the company ‘s comprehensive competitiveness.”
“After the completion of this acquisition, the acquirer will broaden the existing business areas of the public company, actively seeking investment projects with market potential and incorporating them into public companies.”
You may find the full 82-page report here (Chinese).
In addition to OKCoin, other cryptocurrency exchanges are also seeking entry into the traditional stock market.
Huobi has acquired NEEQ-listed company Bangufufeng, which is now renamed as Caimao Network(NEEQ:430361) in Feb 2016.
Taiyi Cloud Technology Company, or better known as Yuanbao Exchange, has acquired Saiyizhineng (NEEQ:430070) in Jun 2016.
Gingkoo (NEEQ:838901) raised $23 million earlier this month, the largest funding in China’s blockchain industry so far.
Shenzhen Stock Exchange and Shanghai Stock Exchange are considered as the “Main Board” market in China. The National Equities Exchange and Quotation (NEEQ), also known as “New Third Board”, was founded in 2006. It first started as an experimental platform for non-listed small high-tech enterprises in Beijing’s Zhongguancun Science Park. is China’s newest stock market. The NEEQ is an over-the-counter (OTC) market that provides greater depth of financing options for Chinese Mainland small-to-medium enterprises. The NEEQ is the only OTC exchange regulated by the China Securities Regulatory Commission (CSRC). The present system was officially established on Jan 16, 2013 after trials in cities including Shanghai, Tianjin and Wuhan.
As of 23rd Dec, the number of NEEQ-listed company is 10,105, making it the biggest OTC stock market in the world.