Rich Goldman's (HKG:0070) subsidiary Credible Limited agreed to dispose of the entire issued share capital of Home Mortgage Finance Company to Ever Bright International Holdings for HK$9.3 million.

At the closing of the disposal, each of the company and Funki Finance will assign the loans owed to them by the target company in the principal amounts of HK$36.3 million and HK$14.0 million respectively to the purchaser, a Monday Hong Kong bourse filing said.

Under the agreement, within three years from the closing date, the purchaser will also pay any recovered amounts from the claims filed by the target company regarding the loans extended by it, amounting to HK$8.7 million.

After the completion of the disposal, the target will cease to be a subsidiary of the company and the company is expected to receive gross proceeds from the disposal and the loan assignment amounting to HK$59.7 million.

The company plans to use the net proceeds from the disposal and assignment of loan for the development of its personal loan business under Funki Finance, while it plans to use the recovered amount, when it is recovered, for the general working capital of the group.

The shares of the money lending and casino businesses company closed over 2% higher on Tuesday.

Price (HKD): $0.05, Change: $+0.0010, Percent Change: +2.17%