HONG KONG (Reuters) -Chinese property developer Seazen Group said on Monday it introduced a new strategic partner via a $6.3 million share placement to accelerate its deployment in the field of real-world asset (RWA) applications.
A move to raise funds with tokens would be the first by a major Chinese developer. Property companies have been scrambling for liquidity since the sector slipped into a debt crisis in 2021, leading to many defaults.
The firm said in a filing it will issue 0.27% of enlarged shares to Blockchain Metaverse Academy, an Australia-incorporated company that engages in digital assets and RWA, which are tangible assets that can be tokenized and brought into the blockchain ecosystem.
“Through this strategic collaboration, the company expects to significantly mitigate the risks and costs associated with independently exploring its own RWA applications, thereby enhancing the pace and efficiency of innovation in this area,” it said.
At the subscription price of HK$2.5845 per share, which is 4.2% higher than the last closing price on Friday, Seazen will raise net proceeds of HK$49.4 million ($6.32 million) from the share sale.
Shares of Seazen firmed as much as 5% on Monday following the announcement, but trimmed gains to 1.6% in afternoon trade.
The developer on Friday set up Seazen Digital Assets Institute in Hong Kong to explore the feasibility of tokenizing its intellectual property resources and asset income.
($1 = 7.8113 Hong Kong dollars)
(Reporting by Clare Jim; Editing by Lincoln Feast.)
