Hot stock: Hatten Land sees heavy trading after crypto mining, solar energy tie-ups

SHARES of Catalist-listed Hatten Land saw heavy trading on Thursday after the Malaysia property developer announced partnerships to install cryptocurrency mining rigs and solar panels on its properties in Melaka.

The developer will also raise S$1.8 million from three investors through a proposed share placement where each share comes with a detachable warrant.

Shortly after resuming trading on Thursday, shares of Hatten Land were the most heavily traded on the Singapore bourse by volume, with 35.7 million shares changing hands. There were no married deals recorded, based on ShareInvestor data.

Hatten Land's share price climbed as much as 40 per cent or 1.1 Singapore cents to 3.6 cents as at 9.09am. The counter last closed at 2.5 Singapore cents on Friday. On Monday, Hatten Land had called for a trading halt.

In a bourse filing, Hatten Land said its wholly-owned subsidiary inked a memorandum of understanding with mainboard-listed Singapore Myanmar Investco (SMI) to jointly explore business opportunities in crypto mining.

SMI plans to install and operate up to 2,000 crypto mining rigs on Hatten Land's Melaka properties from December 2021. Hatten operates six malls and owns four hotels in the Malaysia state.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

Coupled with Hatten Land's solar energy initiatives, both parties will be able to conduct "green" crypto mining across the developer's assets. Hatten's subsidiary will provide the technological know-how on "green" crypto mining facility management and share the net proceeds of the cryptocurrencies mined.

SMI shares were trading 2.4 per cent or 0.3 Singapore cent higher at 12.9 cents as at 9.09am on Thursday.

As for its solar energy push, Hatten Land has partnered with Bursa-listed Nestcon Berhad to install solar panels on the roofs of some of its properties. The subsidiaries of both entities will set up a joint venture or consortium with other partners to install these solar panels.

For starters, about 6,373 solar panels will be installed at Dataran Pahlawan Melaka Megamall - which is managed by Hatten Group. These panels can generate up to 3.19 megawatts-peak (MWp) of solar energy, allowing Hatten Land to lower its energy costs and contribute to the "green" crypto mining.

The subsidiaries will also jointly collaborate with other potential partners on opportunities to utilise or secure Hatten Land's current and future land reserve in Malaysia. This is to build large-scale solar photovoltaic facilities that are able to generate up to 100 MWp.

To help fund these initiatives, Hatten Land has entered into share subscription agreements with Asdew Acquisitions, Evolve Capital and Ong Toon Wah to raise S$1.8 million. Asdew Acquisitions will subscribe to half of the new shares.

Hatten Land will issue 80 million new shares at 2.3 Singapore cents apiece to the three investors, who were introduced to the company by a common business associate who will not be paid an introducer fee.

Each placement share comes with a detachable warrant which can be converted to Hatten Land shares at 4.8 Singapore cents within two years.

The 2.3 Singapore cents placement price represents a 5.7 per cent discount over the volume-weighted average price of 2.44 cents for market trades done on Sept 10, the last full market day before the placement agreements were signed.

The investors had expressed interest in investing in Hatten Land and do not hold any interest in any investment or any directorship in the company or businesses that compete with Hatten group.

About 70 per cent of the placement and warrant proceeds will be used to fund Hatten Land's new business initiatives. The remaining will be used for working capital purposes.