Domain Holdings (00442) said it signed a supplemental agreement with seller and executive director and chairman So Shu Fai to reduce its planned purchase of VAX to about 1.46% from about 5.56%. The consideration was cut to HK$25 million from HK$100 million, according to ETNet.
The revised payment will comprise HK$20 million in cash and a convertible bond with a principal amount of HK$5 million. VAX operates a virtual asset trading platform and is a licensed corporation approved by the SFC to conduct Type 1 securities dealing and Type 7 automated trading services in Hong Kong, as well as a licensed provider of virtual asset services.
VAX posted a loss of HK$30.12 million for the six months ended June 30. The zero-interest convertible bond has a three-year term and a conversion price of HK$2.50 per share, representing a premium of about 3.2 times to the previous close of HK$0.595. Full conversion would involve the issue of 2 million new shares, or about 0.77% of enlarged share capital, and would reduce So's stake from 74.81% to 74.24%. Domain said the reduced acquisition would not affect its business plan because it will continue to build cooperation with VAX.
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