It has been an eventful day for the Fatfish Group Ltd (ASX: FFG) share price on Wednesday.
This morning the tech venture builder company's shares jumped as much as 22% to 16.5 cents following the release of an announcement.
However, shortly afterwards when the Fatfish share price had eased to 14.5 cents, its shares abruptly entered a trading halt.
What is going on with the Fatfish share price?
Investors were buying Fatfish shares this morning following the release of announcement relating to its 50.1% owned Abelco business.
According to the release, the Sweden-based investment company has reported profit after tax of A$15.1 million for FY 2020. This is up 526% from a loss of A$3.5 million in FY 2019.
However, it is worth noting that this has been driven almost entirely by asset sales. During the year, Abelco actually reported a 29% decline in revenue to $1.75 million.
Fatfish explained: "Abelco turn-arounds from making a loss of A$3.5 million in FY2019 to a profit of A$15.1 million in FY2020. This is largely due to Abelco's disposal of non-profitable subsidiaries, as well as the appreciation in the value of other key assets, including Abelco's stakes iCandy Interactive Limited (ASX: ICI), that has shown strong share price performance during the financial period."
Why is the Fatfish share price in a trading halt?
The Fatfish share price was placed into a trading halt pending the release of an announcement concerning a "material development" in Smartfunding's Buy Now Pay Later (BNPL) services.
The company's shares will remain in a trading halt until the earlier of the release of the update or the commencement of trading on Friday.
What is Smartfunding?
Last week Fatfish revealed that Smartfunding successfully launched its BNPL service as scheduled in Singapore. The company also explained that it sees opportunities to expand outside the country into the rest of South East Asia.
It commented: "Singapore is indisputably the dorminant (sic) financial hub for the Southeast Asia region. By being regulated and headquarted (sic) out of Singapore, Smartfunding aims to attract businesses not only in Singapore, but as well as from the rest of the Southeast Asian economies."
All eyes will be on the Fatfish share price on Friday when this "material" announcement is made.
