19 Oct 2022
Readen Holding Corporation (OTC Pink: RHCO) Announces a Strategic Transaction of Ares Technology
READEN HOLDING CORPORATION (OTC PINK: RHCO), a Venture Capital Corporation which is active in the Fintech, Online Payment and E-commerce industries, today announced the Company has sold 20% of its subsidiary Ares Technology Limited, which holds the E-commerce businesses Neckermann Direct and Two Percent, to IT Star Limited as a strategic move.
IT Star Limited is fully owned by Cocoon Holdings Limited (0428.HK), a Venture Capital Company listed on the main board of HKEX. IT Star Limited has been a strategic partner of RHCO as it holds 8.6% of total RHCO shares issued after a major transaction last December.
The transaction of 20% Ares Technology will be paid with a bond of Shenzhen Huaqin Agriculture Technology Company Limited, which had a value of HKD 29 million (USD 3.7 million) on 30 June 2022 and bears fixed interest at 8.5% per annual. The bond will mature in December 2023 and RHCO will collect an amount of HKD 32.85 million (USD 4.19 million).
Huaqin Agricultural is a private entity established in China, which is principally engaged in technological development of agricultural and biological product, retail and wholesale of food. With this transaction, RHCO is building a synergy with Huagin Agricultural’s tech team, which will enhance the development of Neckermann Direct (www.neckermanndirect.eu) and Two Percent (www.twopercent.hk), as well as the Company’s B2B food trading platform Fligro Limited (www.fligrofood.com).
Currently RHCO is labeled a Yield Sign (Pink Limited Information) on the OTC Markets, due to an adjustment of the lawyer opinion letter. As all new information has been filed, RHCO is expecting the Yield Sign to be taken off very soon.