Fatfish Internet Group (ASX:FFG) has entered into an Investment Agreement to invest US$200,000 into Indonesia’s PT Mitra Cipta Teknology (Mitra Cipta).
This will give it a 56% interest in Mitra Cipta, which operates e-commerce website www.HargaHot.com that has served more than 47,000 households in Indonesia since its started operations a year ago.
Indonesia has an estimated population of 75 million internet users and has a fast growing e-commerce industry because of the size of the market.
www.HargaHot.com has a business model similar to that of website www.CatchOfTheDay.com.au and offers lifestyle and household items online at a discount and earns a margin from the sales.
Dragon Commerce, Fatfish’s newly setup Indonesian subsidiary, is focused on investing into Indonesian e-commerce businesses and plans to be publicly listed on the Indonesian Stock Exchange (IDX) within the next 18 months as a pure-play e-commerce company.
There is currently no pure-play e-commerce company quoted on the IDX.
Separately, the company’s Singaporean subsidiary Fatfish Internet has assisted its investee company Dressabelle Pte Ltd to identify and secure further investment from third-party investors, include Sovereign Capital.
Sovereign Capital and co-investors have made an investment of US$708,000 into Dressabelle in the form of Series A shares.
As part of this round of investment Fatfish Internet has made a follow-on investment of US$50,000 in the form of Series A shares in Dressabelle.
Upon full conversion, this US$708,000 worth of Series A shares will convert into 33.33% ordinary capital of Dressabelle. This investment puts a valuation of US$2.12 million on Dressabelle.
If the Series A shares are fully converted into ordinary shares, Fatfish Internet will eventually own 14.1% of the ordinary capital of Dressabelle on a fully-diluted basis.
This valuation is significantly higher than that of the earlier investment option and arrangement granted by Dressabelle to Fatfish Internet.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.