Hong Kong-listed casino investor Amax International Holdings Ltd has announced plans to establish a blockchain technology arm in an effort to “diversify its business operations, broaden its income sources and explore investment and or development opportunities.”
In a filing to the Hong Kong Stock Exchange on Thursday, Amax revealed it has reached an agreement that will see a company called LDJ Cayman Fund Ltd act as an advisor in sourcing and setting up projects or businesses in relation to blockchain technology and cryptocurrency. Amax, which operates a number of gaming business in Vanuatu and a VIP room in Cambodia, will pay LDJ Cayman Fund Ltd a sum of HK$585,000 (US$75,000) and the equivalent of 3 million share options for its services.
Explaining its reasoning, Amax said it is “optimistic about the future prospects of blockchain technology and its application across the global communities. Blockchain technology is safer, more usable, more efficient and smarter than traditional technologies.
“Given the solid background of [LDJ Cayman] in the blockchain industry, the company believes that the co-operation … presents a valuable business opportunity.”
LDJ Cayman Fund Ltd is wholly-owned by David Drake, described in the filing as a “thought leader and prominent advisor in the blockchain, cryptocurrency and initial coin offering markets.” He previously collaborated on the Jumpstart Our Business Startups Act (JOBS Act) to create new laws underlying fundraising in the United States for all initial coin offerings and has reportedly helped blockchain firms he advised raise US$101 million in funding through their initial coin offerings.
Drake is currently the Chairman of the strategic advisory board of blockchain division of Cogint, Inc and founder and chairman of LDJ Capital – a multi-family office which deals in various funds worldwide with over US$1.5 trillion in assets.
Amax International announced in November that it would seek new revenue streams overseas following a protracted legal dispute with the management of its Macau casino, Greek Mythology.
The future of the shuttered casino remains in limbo with the group awaiting the result of an application to the Macau court to appoint its Chairman and CEO, Ng Man Sun, as the administrator of Greek Mythology, located inside The Beijing Imperial Palace Hotel, in order to gain access to and control over the casino’s books and records.
Amax is looking to remove a Disclaimer of Opinion issued by its auditors as it continues to pursue Greek Mythology’s former management team in order to access financial records.
Greek Mythology was originally closed in December 2015 under order of the DICJ, however the Macau Government Tourism Office also ordered The Beijing Imperial Palace Hotel to cease operations on 22 July 2016. The hotel’s license was subsequently revoked on 12 January 2017.
Amax, which holds a 24.8% stake in Greek Mythology, said previously that it “has been trying but failed to contact the management of Greek Mythology to understand the current situation of Greek Mythology which led to uncertainty on the development of Greek Mythology.”
The appointment of Mr Ng as administrator would allow the company to retrieve bank statements, liaise with Macau government authorities and ascertain the casino’s financial standing with a view to having the Disclaimer of Opinion removed.
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