Gold miner Anchor Resources changes name, expands into fintech business

GOLD miner Anchor Resources will be dipping its toes into the fintech sector following a name change to VCPlus Limited and a joint venture (JV) agreement with CapitalX Global and five investors.

The Catalist-listed firm said in a bourse filing on Wednesday that the proposed JV was recently approved by the company's shareholders at an extraordinary general meeting on April 29.

The JV company, Custody Plus, will provide custodian services for digital assets and will have an issued and paid-up share capital of S$1 million. VCPlus will have controlling interest of 55 per cent, CapitalX 35 per cent interest and the investors an aggerate of 10 per cent interest.

Custody Plus will apply for all the necessary licences including the Capital Market Services licence issued by the Monetary Authority of Singapore for the conduct of its business, said VCPlus.

In the partnership with CapitalX, Custody Plus is looking to tap CapitalX's expertise in fintech regulation, licencing, as well as the adoption of fintech strategies and technology given that it is the controlling shareholder of digital asset exchange platform operator ECXX Global.

"With such specialist knowledge, CapitalX will be able to guide and advise Custody Plus on the business and operational processes and requirements of digital asset exchanges, the key customers of businesses providing custodial services for digital assets," according to VCPlus in the regulatory filing.

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VCPlus has also entered into separate subscription agreements with the five investors, where they will subscribe for an aggregate of about 99 million new shares in the capital of the company for a cash consideration of S$2.7 million.

The investors are managing director and head of group lifestyle, finance and digital ecosystems & payments at OCBC Desmond Tan, Singaporean businessmen Jeffrey Hong and Foo Kok Chye, entrepreneur Yip Chee Hoong and private company One Light Holdings, which is owned by Indonesian entrepreneur Novryati Sumojoki.

The issue price of S$0.0270 share was commercially agreed between the company and the investors on an arm's length basis, after taking into account the historical trading performance of the company, prevailing market conditions and the future prospects of the group.

The issue price represents a discount of about 4.26 per cent to the volume weighted average price of S$0.0282 per share for trades done on SGX on May 5. Net cash proceeds of about S$2.6 million will be utilised by the company to finance the business, its fintech consultancy and for working capital purposes.

VCPlus noted in an April 29 announcement that it will be arranging with SGX to change both its English and Chinese trading counter names. Its shares ended on Wednesday flat at 2.9 Singapore cents.