Hot stock: VCPlus shares jump 14.3% on plans to raise funds via security token offering
SHARES of VCPlus 43E : 43E 0% jumped as much as 14.3 per cent on Friday (Nov 12) morning, after the Catalist-listed company announced plans to raise funds via a new security token offering in Singapore.
As at 9.15 am, the counter had risen to a high of S$0.024, up S$0.003 or 14.3 per cent after 31.5 million securities changed hands. It later closed flat at S$0.021 after 128.3 million shares changed hands. No married deals took place in early trade, according to ShareInvestor data.
On Thursday (Nov 11) after the market closed, VCPlus was announced as the blockchain adviser to a project between Thai media company Tree Roots Entertainment and ECXX Global, a digital assets exchange company, to launch a security token in Singapore.
Tree Roots and ECXX Global plan to raise at least US$100 million through this offering, which will be listed and traded on ECXX Global.
The funds raised will go towards Tree Roots' upcoming projects including the production of 5 animated movies and 1 animated series, as well as the development of their own livestreaming platform.
This move comes after growing interest in investments in the media and entertainment industry via tokenisation. This token offers an attractive alternative investment in the industry. Token holders will receive returns by participating in future profits and plans, derived from the intellectual property rights from the films and platform.
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"Tokenisation will allow investors to have democratise access to cash flows from the whole value chain of film production, from the actual movie to derivative products like games, merchandise and other intellectual property rights," said Poramin Insom, founder and chief executive officer of Satang Digital, the Thai adviser to Tree Roots Entertainment Group.
READ MORE:
- Quick takes: Singapore blockchain plays to watch on SGX
- VCPlus furthers fintech ambition with S$5 million acquisition
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