SINGAPORE (June 29): Avarga, formerly known as UPP Holdings, is acquiring a 23.08% stake in Archisen for a cash consideration of up to $1.5 million in three separate traches.
Archisen is a Singapore-based startup that designs, develops and operates urban farming systems by employing Internet of Things, automation and data analytics. Archisen’s existing shareholders are Clarence Tan Kum Wah and Vincent Wei Yangsheng.
Based on Archisen’s unaudited management accounts drawn up to May 31, it recorded a net loss of $0.47 million since its date of incorporation on Dec 2, 2015.
The loss was due mainly to startup expenses and investment in R&D.
Avarga's directors say the investments will provide the company with the opportunity to invest in a promising startup company and enable the group to expand into the urban farming industry, where the demand for such products and services is expected to increase.
Avarga will fund this acquisition through its internal resources and/or bank borrowings.
Shares in Avarga closed at 22 cents on Friday.