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500.com sells shares and plans crypto venture

Part of the US$23m payment for shares will be made in Bitcoin.
Part of the US$23m payment for shares will be made in Bitcoin.

The services provider has named two officers with experience in cryto as it sells shares to Google Luck IT.

China.- Sports lottery services provider 500.com has entered a Class A shares subscription agreement with Hong Kong-listed Good Luck Information Technology Co.

Good Luck will purchase 85,572,963 newly issued ordinary shares for US$23m. That’s a price of US$0.269 per share, which was the closing trading price of 500.com’s stock on December 18.

The payment will be made in partly in US dollars and partly in cryptocurrencies including Bitcoin (BHC) within one month from the agreement.

The operation is expected to close on or before February 20, 2021. Good Luck will then own 16.6 per cent of 500.com.

Good luck is controlled by founder Man San Vincent Law, although he currently holds less than 5 per cent of the company’s outstanding share capital, 500.com said.

The sports lottery service provider also said that its board of directors intends to explore business opportunities in blockchain and cryptocurrency following the successful experiences of its associate, Loto Interactive Limited.

It has appointed two new officers: Xianfeng Yang as the chief executive officer and Bo Yu as the chief operating officer(COO), both effective immediately.

The company described Yang as an executive with “extensive experience in the cryptographic digital virtual currency industry” after leading the construction and operation of Loto Interactive’s big data centre.

Yang served as the company’s senior vice president from 2018 to 2020.

Yu, on the other hand, has served as Loto Interactive’s director since 2017, and as General Counsel since 2014.

The Chinese firm reported net revenues of RMB6.1m (US$936,307) for the third quarter of 2020, 37.8 per cent below the RMB9.8m taken in the third quarter of 2019.

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