Fatfish Group Ltd (ASX: FFG) shares are storming higher today after its investee iCandy Interactive Ltd (ASX: ICI) announced the sale of its digital iCandy platform. At the time of writing, the Fatfish share price has surged an astounding 73.58% higher to 9.2 cents.
The company received a speeding ticket and was placed in an enforced trading halt late on Friday but resumed trading at 12:13 pm today to continue its recent run.
Why is the Fatfish share price flying?
The Fatfish share price is skyrocketing today as the company released its response to the ASX price query.
Fatfish was asked if it was aware of any information that may be driving the share price up, to which it responded that it was not. However it did note the recent announcement by iCandy regarding the sale of a subsidiary.
Moreover, Fatfish suggested the strong recent rise in its share price may be as a result of the recent strong performance of buy now, pay later (BNPL) shares generally. For example, both IOUpay Ltd (ASX: IOU) and Zip Co Ltd (ASX: Z1P) shares have been storming higher in recent sessions. To this point, on 3 February, Fatfish announced that its Singaporean based investee company, Smartfunding, had completed the development of its online BNPL platform. It launches on 13 February.
As mentioned, also announced today was the sale of iCandy Digital for $4.8 million to Rightbridge Ventures. This is noteworthy as Fatfish has a 50.1% ownership of the company through its interest in Abelco Investments Group. Complicated as it is, Fatfish also has a 33% interest in iCandy.
However, as the transaction does not result in any material change in Fatfish' interest in iCandy, the information should theoretically have no material effect on the Fatfish share price.
Rightbridge is a Swedish company that is looking to execute an initial public offering (IPO) in 2021. Its core business is investing in companies that shape the future of e-sports and videogames as part of the global digital entertainment industry.
When the transaction is complete, Fatfish will become a major shareholder in the listed shares of Rightbridge. It's worth noting, the deal still requires shareholder approval.
About the Fatfish share price
Fatfish is a global tech venture investment and development firm. It partners with entrepreneurs to help them build and grow internet businesses via a co-entrepreneurship model. Among the company's investments is, as mentioned, Abelco, which is invested in the cryptocurrency and blockchain ventures Minerium and Kryptos-X.
The Fatfish share price is up a remarkable 820% in the last year.