Catalist-listed VCPlus, which was formerly mining company Anchor Resources, has acquired APEC Solutions for a consideration of $5 million.
The acquisition was done in a bid to boost VCPlus’ growth in its FinTech and Blockchain consultancy business.
VCPlus, in April, announced that it would diversify its core business into the technology sector including the provision of advisory, consultancy and management services.
The sale and purchase agreement (SPA) was signed by VCPlus and Cedric Yap Kun Hao on Sept 27. Yap is the sole director and shareholder of APEC Solutions.
According to the SPA, the consideration will be paid by the issuance and allotment of 172.4 million new shares at 2.9 cents per share in the capital of VCPlus.
The shares represent 3.95% of the existing issued and paid-up capital of the company, and 3.80% of the company’s enlarged share capital.
APEC Solutions is a technology consultancy firm that is a developer and integrator of technology solutions for companies. Its suite includes blockchain and FinTech solutions development, enterprise software solutions, e-commerce and digital marketing services.
It has a total issued and paid-up share capital of $1.34 million over 1.34 million shares.
As at Sept 27, APEC Solutions has two wholly-owned subsidiaries, CLIKZ and 3SIXTY VHOMES.
Upon the completion of the acquisition, APEC Solutions will become a wholly-owned subsidiary of VCPlus, while CLIKZ and 3SIXTY VHOMES will become indirect wholly-owned subsidiaries of VCPlus.
Based on the consolidated financial statements of APEC Solutions, the company recorded a net loss of $110,869 for FY2021 as well as net assets of $1.09 million.
The acquisition is not the first transaction between VCPlus and Yap.
On Oct 16, 2020, VCPlus had entered into a loan transaction of $3.5 million with Yap, which was completed on Feb 9.
Yap had introduced Lim Beng Chew, Tang Yao Zhi, Tan Soo Kia and Lee Teck to VCPlus. In return, the company had paid Yap an introducer fee of $262,500, which were paid through the issuance of 176.2 million new shares in the company.
Lim is a substantial shareholder of VCPlus.
VCPlus had also previously hired APEC Solutions for technology services as well as the works and maintenance for its website for a fee of $7,000.
According to the SGX filing by VCPlus, the acquisition will see the company tapping on APEC Solutions’ expertise, resources and network to drive its business growth in the technology space.
VCPlus will also take over APEC Solutions’ tech team.
“This acquisition allows VCPlus to grow its capabilities to serve the growing blockchain and FinTech technology sector. According to KPMG, global FinTech investments increased from $87 billion in second half of 2020 to $98 billion in the first half of 2021,” says VCPlus’ CEO Clarence Chong.
“My team and I look forward to become a part of VCPlus’ larger vision to be the first SGX listed custodian for digital assets. With the support from VCPlus, we are better positioned to capitalise on the growth in the blockchain, FinTech and digital assets sectors,” says Yap.
Shares in VCPlus closed flat at 2.5 cents on Sept 27.
Photo: VCPlus, formerly Anchor Resources
