RC365 Holding PLC (LSE:RCGH) shares rose 12.5% to 90% after it revealed that its subsidiary, Regal Crown Technology Limited, has signed a collaboration agreement with APEC Business Services Limited to develop and enhance the RC2.0 App into the advanced RC3.0 version.
APEC, a wholly owned subsidiary of Hatcher Group Limited, has agreed to pay Regal Crown HK$15mln for the development of the RC3.0 App. The collaboration agreement stipulates that the entire sum is payable upon signing, and Regal Crown will utilise the funds solely for the development of the RC3.0 App.
Upon the launch of the RC3.0 App, both Regal Crown and APEC will share any income and revenue generated from its usage on a 50:50 basis. The RC3.0 App, once completed and launched, will offer users enhanced features and functionalities, including virtual banking facilities, enterprise resource planning and blockchain features.
The agreement is effective from 23 June 2023 and will continue for a period of 15 years from the date of RC3.0 App's launch, with automatic one-year renewals thereafter. Either party has the right to terminate the agreement with a one-month written notice, with or without cause.
In a statement, Chi Kit Law, chief executive officer of RC365, expressed his enthusiasm about the collaboration, commenting: "We are delighted to have entered into this agreement with APEC, which will allow Regal Crown to upgrade its existing RC2.0 platform to RC3.0. This will be a multi-platform app available to businesses and individuals, existing and prospective customers, providing them with better online payment and banking services and support."
RC365 Holding, which specialises in payment gateway solutions and IT support, said the collaboration between Regal Crown and APEC marks an important milestone in the company's pursuit of advancing its solutions and expanding its reach in the digital banking sector.