In response to a query from the Singapore Exchange following a price and volume surge on the morning of Nov 8, HGH Holdings announced it had signed a non-binding memorandum of understanding with AAEX Pte Ltd, a crypto asset player.
Under the MOU, HGH and AAEX have agreed to negotiate exclusively with regards to any potential joint venture, investment and/or collaboration in relation to the development of mining of cryptocurrencies in Singapore.
The parties have four months from the date of the MOU to negotiate and enter definitive agreements.
See: HGH draws SGX query as shares see high volume trading movement
The proposed collaboration is part of HGH’s strategy to diversify returns and achieve long-term growth. The HGH's board believes that the proposed collaboration will bring about new revenue streams and improve its prospects, so as to enhance shareholder’s value.
HGH was listed on Catalist Board in 2005. Its main business was in the manufacturing and supply of high-precision cold forged loudspeaker parts.
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In 2017, the company moved into new business areas such as the supply of ready-mix concrete, manufacturing precast concrete products, underground cable installation and so on.
Apart from a loss in 1HFY2021, HGH has a clean balance sheet with just $100,000 in borrowings, and shareholders funds of $48 million, translating into a net asset value of 2.72 cents per share.
One of its key assets is the EMS Building on Benoi Road which is mainly rented out to third parties.
HGH was trading at 1.5 cents prior to a trading halt just before the market closed on Nov 8.
