Macau-based electronic gaming machine service provider Success Dragon says it will use almost half of the HK$68 million it hopes to raise via the placing of new shares to establish a blockchain business.
The company announced in early August that it planned to place almost 415 million shares representing 20% of the issued share capital of the company with a view to raising up to HK$97.5 million. That figure has now been revised to around HK$68.8 million representing 14.11% of issued share capital.
In a filing to the Hong Kong Stock Exchange on Wednesday, Success Dragon said it would spend HK$30 million of the raised funds to hire the relevant personnel, expand the office premises and develop relevant management and settlement systems and platforms to build up the group’s blockchain expertise. The company added that it has also identified candidates for Chief Technology Officer and has started looking for potential developers and third-party resources to build up a related blockchain system and platform.
Explaining its interest in blockchain, Success Dragon said, “The group intends to expand its business by applying blockchain technologies to improve its business operations. For example, blockchain technologies could be used to track gaming machines leased by consolidating delivery records, maintenance and servicing records, usage records, agreements, invoices and payments into a single transparent, easily accessible and secure ledger.
“This will reduce the need to engage multiple systems and resources and potentially make these machines available to clients who are further away and who may not have the necessary infrastructure to accurately report the delivery, maintenance and usage records required to use these machines.
Success Dragon revealed earlier this month that its cash reserves are down to just HK$1.2 million.
