SMI Vantage acquires 3,000 crypto mining machines at S$705,000

WATCHLISTED SMI Vantage Y45 : Y45 0% is acquiring 3,000 crypto mining machines from NBTC Limited, a wholly-owned subsidiary of China-headquartered tech firm The9, in a deal amounting to 3.3 million yuan, or S$705,000 (according to the agreed exchange rate of S$1.00 to 4.68 yuan).

The purchase order was issued via SMI Vantage's wholly-owned subsidiary SMI CS on Wednesday (Nov 24), and comes a week after SMI Vantage and Nasdaq-listed The9 signed a pact to explore developing a non-fungible token (NFT) publishing business.

Under the order, the purchase consideration may be satisfied either by payment to NBTC in cash, or through the issuance of 7.83 million of SMI Vantage's new ordinary shares to The9, at the issue price of S$0.09 per share, credited as fully paid-up, amounting in aggregate to the value of the purchase consideration, subject to shareholders' approval.

The issue price of S$0.09 represents a 10 per cent discount to the volume weighted average price of S$0.10 per share for the last 30 full market days on which they were traded on the mainboard.

The purchase consideration was arrived at by agreement between SMI Vantage and The9 at arm's length, on a "willing-buyer, willing-seller" basis, according to a bourse filing by SMI Vantage on Nov 24.

The9 is a tech company incorporated in the Cayman Islands and headquartered in China. It is a substantial shareholder with an existing aggregate direct and deemed interest in 8.6 per cent of SMI Vantage's equity share capital, comprising 44.3 million shares.

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SMI Vantage has already received the first 100 crypto mining machines, which are currently being distributed to locations in South-east Asia, the company said.

The company's president and chief executive Mark Bedingham said it has an option to buy a further 2,000 machines.

"SMI Vantage is working to democratise access to the new economy, whether through mining crypto currencies or access to NFT platforms," Bedingham said.

SMI Vantage said it will also be developing a new "mining-as-a-service" platform with The9 and NHASH, a cloud mining platform.

SMI Vantage and The9 signed a memorandum of understanding last week to develop an NFT publishing business, and had said it expects to finalise plans "within the next few weeks".

SMI Vantage shares closed 11.5 per cent or S$0.012 lower at S$0.092 on Nov 24.

The company has been on the Singapore Exchange's (SGX) watchlist since Dec 4, 2019 due to the financial entry criterion in the exchange's listing rules. The company has 36 months from its watchlisted date to restore its financial health and meet the necessary requirements, failing which it could be delisted or trading of its shares suspended.

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