Delin Holdings plans to raise HK$653.3 million to focus on developing blockchain, RWA and virtual asset businesses

PANews reported on August 7th that, according to Zhitong Finance, Delin Holdings (01709.HK) announced that on August 7th (before trading hours), the company, the sellers DA Wolf and Mr. Chen, and the placing agent entered into a placing and subscription agreement. On the same day, the company entered into a special mandate subscription agreement with the subscriber (DA Wolf Investment I Limited, a company wholly owned by the company's controlling shareholder, Mr. Chen Ningdi). The total gross proceeds from the transactions contemplated under the placing and subscription agreement and the special mandate subscription agreement are estimated to be approximately HK$653.3 million.

The Company intends to use the aggregate net proceeds from the Top-up Subscription and the Special Mandate Subscription for the following purposes:

(i) approximately 30% to support the Group’s strategic acquisitions and/or investments and to expand its RWA tokenisation programme;

(ii) approximately 15% to develop Bitcoin mining operations and build Bitcoin reserves;

(iii) approximately 7% will be used to establish a licensed virtual asset over-the-counter trading and retail network in Hong Kong, and to apply for and upgrade compliance licenses for virtual asset-related businesses in Hong Kong and other jurisdictions;

(iv) approximately 8% will be used to further develop the Group's digital asset, cryptocurrency and stablecoin related business plans by independently engaging blockchain experts to research and develop related systems and interfaces, or by establishing strategic joint ventures with globally renowned industry players;

(v) approximately 10% will be used to invest in the ONE Carmel premium residential project in the United States to further strengthen the Group’s position and network in Silicon Valley and expand its artificial intelligence and real-world asset initiatives for future development;

(vi) approximately 10% will be used to invest in IT facilities and system upgrades to support the further development of the Group’s digital assets and fintech strategies;

(vii) approximately 10% will be used to create exchange-traded funds and develop quantitative investing, including building new exchange-traded fund products and algorithmic investment capabilities to expand the Group's financial product range;

(viii) approximately 10% will be used to supplement the Group’s working capital and support its daily operations.