【Press Release】Edvance International enters into a subscription agreement with HKbitEX To capture the synergies of virtual asset exchange business with its technology edges

(Hong Kong – 25 November 2020) The leading cybersecurity company in Hong Kong, Edvance International Holdings Limited (“Edvance International” or the “Company”, together with the Company’s subsidiaries, collectively the “Group”) (SEHK stock code: 01410.HK), is pleased to announce that Axion Global Holdings Limited (“Axion Global”), an indirect wholly-owned subsidiary of the Group, entered into a subscription agreement with a target company that wholly owns Hong Kong Digital Asset Ex Limited (“HKbitEX”) – a regulated virtual asset exchange platform, founder shareholders of the target company and other series A2 preference shares investors, to subscribe the series A2 Preference Shares at the subscription price of US$3 million, which shall be settled by way of cash payment.

Upon Completion, the Group will hold US$3 million of share capital of series A2 preference shares, being 30% of the all series A2 preference shares issued and approximately 6% enlarged issued shares (on an as-converted basis) of the target company after the investment by all series A2 preference shares investors. According to the shareholder’s agreement, the subscriber shall be entitled to nominate a director on the board of directors of the target company.

The Group plans to invest in new businesses that show ample growth potential, including the rapid-growing financial technology sector throughout the world. The business direction of HKbitEX helps to create new business models for financial technology, as well as brings about significant changes to the financial sector and the means of providing financial services. In view of the virtual asset trading platforms in Hong Kong will be regulated, the Group anticipates it will derive ample business opportunities for HKbitEX and other financial technology companies.

Mr. Raymond Liu, Chairman and Group CEO of Edvance International commented, “Following the signing of the subscription agreement with HKbitEX, it marks the Group’s first investment through Axion Global is expected to conclude. As a leading player in cybersecurity industry, Edvance International can utilize its unique advantage in technological knowledge accumulated over the years, to achieve greater synergies with HKbitEX and create more business opportunities in virtual asset sector. I am also confident about the prospects of HKbitEX’s virtual asset trading business.”

Headquartered in Hong Kong, HKbitEX is principally operating virtual asset trading exchange. It strives to provide a compliant and regulated virtual asset spot trading and over-the-counter (“OTC”) exchange platform. HKbitEX is one of the first applicants for dealing in securities (Type 1) and automated trading services (Type 7) licences for the purpose of a virtual asset trading platform from Hong Kong’s Securities and Futures Commission (“SFC”), which will enable them to offer compliant, secure and reliable virtual asset trading services to global professional investors.