SINGAPORE - Media OutReach - 1 SEPTEMBER 2017 -CoAssets Limited ("CoAssets" or the "Company") (ASX: CA8), an online finance platform, today announced two major milestones in line with the Company's next phase of growth to transform into an online financial institution and to create a more diversified credit landscape.
- CoAssets has entered into a Share Sale and Purchase Agreement (SSPA) with Brighten Management Limited (BML), a member company of Styland Holdings Ltd (HK EX code: 211), a Hong Kong main board listed company with a market capitalisation of more than HKD775 million.
- 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.
- CoAssets has released the annual report for the Financial Year 2016/2017 and recent operational highlights including a S.M.A.R.T initiative and reach into the corporate loans business.
In line with CoAssets' next phase of growth, announcement of the two major milestones have set the stage to actualise the long-term vision to transform the Company into an online financial institution. CoAssets has been a major provider of matching liquidity to ventures in need of funds with particular emphasis on the funding gap of between S$100,000 and S$5 million, raising over $43 million (US$30 million) through its platform since 2013. The acquisition of BFL enriches CoAssets' capabilities to offer financial services outside of Singapore, as well as position the Company to better serve the market in China, where it has achieved a revenue of more than 3000% in the last 12 months of operations. The acquisition will further serve to synergise CoAssets' commitment to provide credible and alternate financing solutions for all players seeking to succeed in a global economy.
Adding to CoAssets' core competencies, the award of the Capital Market Services (CMS) licence by the Monetary Authority of Singapore (MAS) in June 2017, has enabled the Company to once more engage its 55,000-plus users in Singapore and connect qualified investors with opportunities over the platform. The licence will further set the stage for CoAssets to expand their reach into the corporate lending business, where more than S$9.5 million worth of loans have been deployed, with a total write off rate of 1.46%.
The Company 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. With a view of weaning off traditional business models, key areas of the initiative include: (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.
Commenting on CoAssets' transformation, Getty Goh, CEO and Co-Founder of CoAssets said, "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".
Mr Julian So, Chief Business Development Officer and Co-Founder of Brighten Management Limited commented, "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".
KEY 2016/2017 ACCOMPLISHMENTS
- 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
About CoAssets Limited
CoAssets (www.coassets.com) is one of South-East Asia's leading online finance platforms which is headquartered in Singapore and listed on the Australian Stock Exchange (ASX). Officially launched in Singapore in July 2013, it currently has more than 230,000 registered users. The company won the Red Herring Top 100 Asia Award for 2014, as well as OPP Gold Award for Excellence and currently has offices in Singapore, Australia and China.
About Brighten Finance Limited
Brighten Finance Limited (BFL) is a Hong Kong based financial company established in November 2015 and is a group company of Brighten Management Limited (BML). BFL obtained its moneylender's licence on 9 March 2017 and primarily operates in the Hong Kong residential mortgage business.