BNN Technology PLC - Shareholder Update 23rd December 2022
Further to our update on 30th June 2022, we are pleased to report the updated position of BNN Technology PLC (the “Company” or “BNN”) and the status of our business-sale transaction, as set out below.
Since the date of our previous update, both China and Hong Kong have continued to endure Government enforced travel restrictions and Covid-19 lockdown measures. The strict rules and lengthy quarantine requirements have made travel very difficult, both within China (between certain provinces and cities) and internationally. The lockdown measures have also resulted in widespread office closures, which has not only impacted on access to our own offices but also to the offices of our advisors and the purchaser. These factors have significantly hampered and delayed our transaction, preventing site visits and the progression of our buyer’s due diligence for several months.
Nevertheless, we have continued to trade well, as more customers convert from making in-store lottery purchases to instead utilizing our online-to-offline lottery ticket platform. Through the growth achieved during 2022 we expect to report significant year on year increases in revenues and profitability.
It should be noted that the strategic partnerships we had hoped to complete by now have been delayed into 2023, and we aim to close and sign these as soon as possible after Chinese New Year.
Following the relaxation of the Covid-19 rules, our buyer’s due diligence and the wider transaction process have recently recommenced and the parties are now aiming to complete as much as possible of the remaining work by Chinese New Year (on 22nd January 2023). The balance of the work will then be completed within a short number of weeks after the New Year holidays, followed by the issuance of a Proxy and Notice of General Meeting during the second half of March.
Whilst waiting for further news on the transaction, shareholders can take encouragement from the business’s positive trading performance and profitability. We look forward to updating shareholders again, which we will aim to do by end of February 2023.