(Alliance News) - RC365 Holding PLC on Tuesday said it signed a subscription agreement and memorandum of understanding with Hatcher Group Ltd, to collaborate on smart algorithm technology research.

RC365 shares jumped 25% to 23.80 pence each in London on Tuesday afternoon.

RC365 is a London-based company focusing on payment gateway solutions & IT support and security services. Hatcher is a Hong Kong-based financial services provider which provides corporate finance advisory and business consultancy services.

The memorandum aims "to leverage on the combined expertise and resources of the two companies to collaborate on the research and development of smart algorithm technology and to provide intuitive asset recommendations and other potential fintech-based solutions."

Meanwhile, under the subscription agreement which is conditional on UK Financial Conduct Authority approval, RC365 will issue 18.0m new shares to Hatcher, while receiving 38.6 million Hatcher shares.

The Hatcher shares have a value of HKD34.8 million, or around GBP3.7 million. That is around HKD0.9 per share, representing a 10% discount to Hatcher's latest price per share of HKD0.99 on the Growth Enterprise Market.

With RC365's issuance of 18.0 million shares to Hatcher, there will be 125.5 million RC365 shares in issue, meaning Hatcher will own a stake of over 14% in RC365. Meanwhile, RC365 will own 4.4% in Hatcher.

By Tom Budszus, Alliance News reporter

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