Macau-based electronic gaming machine service provider Success Dragon says it has successfully completed the placing of shares as it looks to expand its business and replenish cash reserves.
In a filing to the Hong Kong Stock Exchange on Tuesday, the company announced that it had placed a total of 292,610,000 placing shares to not less than six placees. The shares represent around 14.11% of issued share capital with Success Dragon having previously announced that it was looking to raise HK$68.8 million from the placement.
The company recently revealed that it would use HK$30 million of the raised funds to develop a new blockchain business, including the hiring of relevant personnel, expansion of the office premises and development of 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 also revealed last month that its cash reserves are down to just HK$1.2 million.
