Shares in CoAssets double after news of Hong Kong lender deal
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A small crowdfunding company saw its share price double after announcing plans to move into corporate loans and take control of a Hong Kong moneylender.
Shares in CoAssets (ASX:CA8) were up 100 per cent to 40c at 2.30pm AEST Friday.
CoAssets is a Singapore-based crowdfunding website that lets people invest in new business projects. Some of its recent campaigns were for projects in steel fabrication, solar power and real estate.
As part of its yearly report on Friday morning, CoAssets announced strong growth from its push into China — but also a plan to move into the corporate loans business.
It then followed that by announcing a deal to buy 25 per cent of Brighten Finance Limited (BFL) for $1.8 million — and take control of the company.
“CoAssets will … assume day-to-day management control of BFL at the end of the acquisition process,” it said.
BFL is a Hong Kong financial company that specialises in making bridging loans to people so they can upgrade their properties.
CoAssets said the purchase would help it grow its membership base, which is currently around 230,000 people.
“This acquisition greatly strengthens our internationalisation strategy,” said chief executive Getty Goh.
“As CoAssets is in the business of matching borrowers and lenders, this acquisition will give CoAssets a steady supply of secured borrowers.
“Ultimately this investment will increase our market reach and assist us to achieve our financial objectives.”
CoAssets was listed on Australia’s smaller exchange, the NSX, before making the jump to the ASX in September last year.