EEKA Fashion and DL Holdings Forge Strategic Partnership with RWA Tokenization Focus

EEKA Fashion Holdings (3709.HK) and DL Holdings Group (1709.HK) announced a strategic cooperation and investment agreement on September 12, with DL Holdings conditionally agreeing to subscribe for new shares worth HK$29.9 million in the fashion retailer. The partnership also establishes a framework for exploring real-world asset tokenization opportunities. Under the subscription agreement, DL Holdings will purchase new shares representing approximately 0.65 percent of EEKA Fashion's existing issued share capital, with gross proceeds totaling HK$29.9 million and net proceeds estimated at HK$29.6 million after expenses.

Hong Kong-listed EEKA Fashion operates as a fashion retailer focusing on women's apparel across multiple brands in China and internationally. DL Holdings Group, also traded on the Hong Kong Stock Exchange, has been actively pursuing blockchain and tokenization initiatives in recent months. The group previously announced plans to tokenize physical assets worth up to HK$500 million and has invested $1.3 million in Asseto Holdings, a fintech company specializing in real-world asset tokenization. DL Holdings has also been actively distributing tokenized assets to investors, with plans to allocate up to HK$60 million worth of digital assets as compliant distributions.

The strategic cooperation extends beyond the equity investment to include joint exploration of RWA tokenization initiatives, with both companies reaching consensus on the overall framework and direction for tokenizing real-world assets to create innovative value for EEKA Fashion shareholders. RWA tokenization allows physical assets to be represented as digital tokens on blockchain networks, potentially improving liquidity and enabling fractional ownership. EEKA Fashion's move into tokenization represents a significant strategic shift for the traditional fashion retailer, as the company operates multiple fashion brands and retail channels that could provide suitable assets for tokenization under the new partnership framework. 

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