Kitchen Culture Holdings, which provides furnishings and equipment for kitchens, is buying a 30% stake in big data firm OOWAY Technology for $23.92 million.
The company, which reported a loss of $1.56 million for the half-year ended Dec 2019, will be paying for the acquisition by issuing 90 million new shares at 26.58 cents each.
At this level, it is a 17.25% discount to the volume-weighted average price of 32.12 cents on 11 August 2020, which is the last full market day on which the shares were traded prior to the date of the sales and purchase agreement.
Jim Rogers, well-known as a commodities cheerleader, is a co-founder of OOWAY Group, which is selling the stake in OOWAY Technology to Kitchen Culture.
“With the complementary strengths of OOWAY and Kitchen Culture, I believe that our collaborations will yield exciting results in the future,” he said.
Lim Wee Li, executive chairman and CEO of Kitchen Culture, calls the acquisition a chance for the company to explore alternative businesses.
“We have high hopes that this investment would deliver great value to our shareholders,” he said.
Kitchen Culture last traded at 32 cents, up 357% year to date.
