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Sealand Capital disposes of SecureCom at considerable loss
(WebFG News) - Tech investment and acquisition firm Sealand Capital Galaxy has entered into a non-binding memorandum of understanding to dispose of its main business, SecureCom Media, to Creative Alpha for a nominal fee of £10,000.
Sealand, floated as an acquisitive cash shell in 2015, acquired Hong Kong-based SecureCom in a reverse takeover back in February 2017 for £1m in cash and 10m ordinary shares at 20p each.
Following a recent "extensive" review, however, directors have decided that, in light of the competitive environment in which SecureCom operates, it would require "substantial" extra cash in order to remain competitive. But Sealand said its focus had switched to its WeChat Pay operations.
The proposed disposal of SecureCom, a limited liability company incorporated in the British Virgin Islands focussed on the provision of advertising services through social media, was conditional on Creative Alpha's having a look at the books.
Sealand chairman Law Chung Lam Nelson said, "We invested in SecureCom in 2017 and were very excited about its prospects, but with new competitors entering the market and offering similar products we feel our investment is better served somewhere else.
"The media and technology market constantly evolves and at Sealand, we like to stay ahead of this fast-moving marketplace. Importantly, we are focusing on our future investments and continued geographic expansion, especially as we seek to use our expertise to capitalize on tourism in the United Kingdom with WeChatPay," added Nelson.
WeChat Pay is a cross-border payment app that enables Chinese consumers to purchase items directly from shops, hotels or restaurants abroad without having to exchange currency or withdraw cash. Sealand is a non-exclusive exclusive broker to WeChat Pay, providing a merchant marketing service with the goal of introducing new QR code payment customers to the platform in Hong Kong.
As of 0945 BST, shares had dropped 4.38% to 5.02p.