Fame Harvest – a wholly-owned subsidiary of publisher Arion Entertainment – has entered into a sale and purchase agreement with Gorman Kwong for the acquisition of 1 million ordinary shares in the issued and paid-up capital of Win Win Finance.
This represents the entire issued capital of Win Win Finance.
The aggregate consideration for the purchase of the sales shares is HK$1.25 million, or around $0.22 million.
The consideration – which will be payable in cash – was arrived at by taking into account Win Win Finance’s unaudited cash reserves and assets of HS$763,000 and HK$500,000 as at Dec 16 2021, for the costs and time taken to apply for the license.
This follows arms’ length negotiations between Fame Harvest and Win Win Finance on a willing-buyer and willing-seller basis.
The HK$500,000 for cost and time taken to apply for the license was arrived at after taking into consideration factors such as the remaining validity of the License and quotes obtained from third party service providers, Arion Entertainment states in a Feb 10 regulatory filing.
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The move comes after Fame Harvest obtained shareholders’ approval to diversify into the business of money lending, in February 2021.
If successful, the acquisition would allow the company to commence its money lending business in Hong Kong and thus reduce the group’s reliance on its existing business which has shown limited growth potential in the last few years.
Additionally, the group expects the acquisition to provide shareholders with diversified returns and potential long-term growth, thereby improving its prospects and enhancing shareholder’s value.
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Incorporated on Feb 26 2021 in Hong Kong, Win Win Finance is a private company that is limited by shares. As of Feb 10, it has an issued and paid-up capital of HK$1 million, comprising of 1 million shares.
Gorman Kwang is Win Win Finance’s sole shareholder; He and a certain Mok You Keung are the current directors of the company.
Mok will resign as director of the company before/on the completion date of the proposed acquisition.
The completion is subject to the fulfilment of several material conditions such as: Win Win Finance holding the license which shall not be threatened with withdrawal, revocation or cancellation at any time prior to the completion.
Shares in Arion Entertainment closed flat at 0.8 cents on Feb 10, before the announcement.
Cover photo: file image
