Honye Financial Services reports increased loss in annual results

LONDON - Honye Financial Services Ltd, a special purpose acquisition company (SPAC) focused on financial services and fintech acquisitions in Europe and Asia, reported an increased annual loss for the year ended July 31, 2024. The company’s loss widened to £439,290 from £297,677 the previous year, primarily due to administrative expenses and due diligence costs related to prospective acquisitions.

The loss per share for the year was £0.0178, compared to £0.012 in 2023. At the end of the fiscal year, Honye had cash reserves of £94k, a significant decrease from £303k reported in 2023. This decrease is attributed to the company’s ongoing expenses and the pursuit of a reverse takeover (RTO) with Zoyo Capital Limited, which has experienced several delays.

Honye’s RTO project with Zoyo Capital, announced on June 9, 2021, has been subject to delays, primarily due to investor-related hold-ups. Despite these setbacks, the company has made progress in due diligence, negotiations, and preparations for the prospectus required for the RTO. The delays, however, have led to a depletion of cash reserves, necessitating additional capital raising efforts.

In March 2024, Honye signed a £275,000 loan note with Tang Investment No. 1 Ltd, which was later cancelled in April 2025. In a bid to support the RTO transaction and cover operational costs, the company also entered into an investment agreement with Mr. Abdullah Alnuwaysir for £1.5 million, which was subsequently reduced to £1.0 million, reallocating the £500,000 reduction as a technology setup fee under a License Agreement.

Additionally, Honye issued a Convertible Loan Note Instrument of up to £1.5 million on April 4, 2025, to provide further working capital. The first tranche of £500,000 has been subscribed by Ms. Gu Qian. Moreover, the company entered into a Subscription Agreement with Mr. Weng Jianxiong, who agreed to subscribe for £2.5 million upon completion of the RTO. This strategic investment is anticipated to provide a solid financial base for the successful completion of the RTO and maintain operational working capital for the next 12 months.

The information in this article is based on a press release statement from Honye Financial Services Ltd.

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