Magic Circle to Help HGC Launch the First-Ever STO for a Chinese Company
Magic Circle officially signs contract with HGC for upcoming STO launch.
HONG KONG, 2020 June 18, the Magic Circle team visited HGC’s head office in Xiamen, China for a contract signing that signifies the willingness of Chinese emerging companies to adopt security token offerings (STO) as a viable fundraising method.
Magic Circle has been a fervent advocator of STO for tokenizing in a compliant way to realize true liquidity, while HGC has developed a leading-edge SaaS technology to revolutionize logistics for the e-commerce industry in China. Both companies have formally partnered to use tokenization to attract investments for HGC.
“HGC’s adoption of STO to raise capital is a smart business decision that shows both courage and vision,” said Doer Qu, Magic Circle’s CEO. “They are a great client and a very fast-growing company, with an innovative business model and two successful rounds of private funding. We will use our global compliance digital asset distribution network and blockchain technology to provide high quality professional services and access to global investors to raise capital for HGC. By helping them to conduct a successful STO, we will not only help them to expand their business, but also establish best practices for Chinese companies in the future. STO enables innovation in existing financing methods through the adoption of blockchain technology. It is an efficient, compliant, and holistic approach for companies to attain investment.”
Traditionally, Chinese emerging companies have raised capital through VC funding and bank loans. STO, which took traction in 2018 around the time that initial coin offerings (ICO) started to diminish, is proving to be a much more trusted method of fundraising globally. It is approved and heavily regulated by the SEC in the US, where HGC will file the launch.
“Our SaaS system is a game-changer for the logistics industry in China. Currently, there are approximately 15 million commercial transportation trucks, generating an annual GMV of $706.5 billion USD, with an operational consumption of over $494.5 billion USD and financial demand of over $141.3 billion USD nationally,” said Zhang Wendong, HGC’s CEO. “We expect to capture 20% of this market within the next three years. Even the Chinese government sees value in our SaaS solution. Now is the right time for us to expand. We decided to raise capital using a STO because, as a high-tech company, HGC is keen to try a novel and compliant global financing method. For us, the use of STO has more far-reaching implications. On one hand, a security token serves as a financial incentive tool and represents relevant interests in the company. It creates an ecosystem that allows investors and enterprises to be closely integrated, increasing the contributing value of each individual’s role. On the other hand, it creates transparency and compliance, which have always been the crucial requirements that domestic and foreign capital markets expect from enterprises. A security token issuance will help HGC gain market trust by laying the groundwork for further financing under regulatory oversight.”
STO is a relatively new method of fundraising, especially for companies in China. A successful launch could unlock future investment opportunities for both global investors and Chinese enterprises.
About Magic Circle
Magic Circle is a global tech and consultant company headquartered in Hong Kong, with offices in Beijing, Tokyo, and New York. It specializes in consulting services regarding security token offering (STO), investor and public relations services, security tokens technology research and development services. The company also provides business consulting, security token market advisory for business planning, and market development strategies. For more information, please visit http://magic.exchange/ or reach out to contact@magic.exchange
About HGC
HGC is a SaaS company, headquartered in Xiamen, China. It uses an innovative and comprehensive digital system to streamline the business of millions of fleets and help logistics companies to reduce costs and increase efficiency. It has been a pioneer of intelligent fleet management system in China since 2013, providing vehicle life cycle asset management and operation management. It also provides data management, credit evaluation, financial & tax management, and expenditure accounting following the national value-added tax (VAT) system for medium and large sized fleets and individual truck drivers. For more information, please visit http://www.wehgc.com/ or reach out to ch@wehgc.com.
