Qulian Technology, a China-based blockchain platform developer, has announced the completion of a 1.5 billion Chinese yuan ($234 million) Series B funding round.
According to an announcement from Qulian on Sunday, the news comes just a week following the deal’s lead investor Xinhu Zhongbao, a Shanghai-listed true estate and finance firm, very first disclosed its program to invest in the project in a filing with the Shanghai Stock Exchange on Might 27.
The document indicated that Xinhu Zhongbao intended to invest 1.23 billion CNY ($192 million) in Qulian by means of a combination of a $17 million capital contribution transfer and a $175 million new equity issuance. The deal resulted in the investor holding 49 % of Qulian’s shares.
Founded in 2016, Qulian sets out to develop enterprise-grade options primarily based on its hyperchain blockchain platform. Primarily based on Xinhu Zhongbao’s disclosure, the firm recorded income of $281,000 and a net loss of $2.34 million in 2017, while the firm was valued at $234 million.
This is the second time that Xinhu Zhongbao has shown its support for Qulian, obtaining currently bought a small amount of the firm’s shares in April 2018, at which point the investor valued Qulian at $78 million.
The three-fold enhance in valuation more than two months has predictably drawn scrutiny from monetary regulators in China. In a letter of inquiry published on Could 27, the Shanghai Stock Exchange required the lead investor to justify the rapid change in Qulian’s valuation.
Zhongbao Xinhu replied to the regulator:
This is a enterprise judgement created by the organization and other co-investors primarily based on a complete evaluation of Qulian. There is a danger of a mismatch in (Qulian’s) earnings and valuation.
At press time, Qulian could not be reached by CoinDesk for comment.
Yuan notes and coins image by means of Shutterstock
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Published at Mon, 04 Jun 2018 12:00:09 +0000