Spackman finds South Korean partner for planned ICO

Singapore

CATALIST-listed Spackman Entertainment Group has found a partner for its proposed initial coin offering (ICO), it said on Wednesday.

Movie producer and financier Spackman has made a non-binding deal with a South Korean cryptocurrency developer for its planned "K Coin" utility tokens.

These tokens would give holders access to products and services such as merchandise and concerts.

Developer Project Talent, which has ties to Singapore-based cryptocurrency exchange Kyber Network, would help to build both the tokens and the K Coin platform for Spackman.

Spackman executive director Richard Lee said in a statement that the proposed tie-up "shall enable us to leverage on blockchain technology and the group's content and talent management platform". He is also the company's interim chief executive, following founder Charles Spackman's resignation in December.

Spackman announced its ICO plans in February, with the fund-raising target not yet confirmed. It said at the time that the proposed ICO was still in a preliminary discussion stage, and any definitive agreements would need to go through a due diligence process, as well as get shareholder approval.

Spackman also said that it would seek professional legal advice to ensure that the planned ICO would comply with all applicable rules in Singapore, including laws on money laundering and terrorism financing.

The company's planned K Coins have been billed as utility tokens - used to purchase goods or services - rather than security tokens, which are digital currencies more closely related to tradable assets.

Singapore's central bank chief Ravi Menon said in mid-March that the Monetary Authority of Singapore is "closely watching" crypto token activities here.

Spackman closed 0.3 Singapore cent or 3.6 per cent higher at S$0.087 on Wednesday after the announcement.