Fatfish (ASX:FFG) shares in trading halt pending BNPL acquisition

After trading for just one hour on Friday, the Fatfish share price won't be going anywhere.

| More on:
The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Fatfish Group Ltd (ASX: FFG) share price won't be going anywhere on Friday afternoon after the company requested a trading halt.

Why Fatfish shares paused trading today

The Fatfish share price jumped 4% this morning before entering into a trading halt just prior to lunchtime. This request was made on the basis of an upcoming buy now, pay later (BNPL) acquisition announcement.

Shares in the technology venture building company will remain halted until either Tuesday 8 June or when the relevant announcement is released to the market.

Fatfish ramps up Southeast Asian BNPL exposure

In recent months, Fatfish has been ramping up its strategic investments in the BNPL space with a focus on the Southeast Asian market.

On 18 February, the company's subsidiary Smartfunding successfully launched its corporate BNPL service in Southeast Asia. Fatfish has been progressively increasing its stake in Smartfunding and currently holds a 78.7% stake in the company.

On 26 February, Fatfish entered into a strategic partnership with KryptoPOS to rollout its BNPL services throughout Asia. The company believes that this partnership also has the potential to boost the market reach of its Smartfunding BNPL services.

With Smartfunding's focus on a corporate BNPL product, Fatfish acquired a strategic 85% stake in Forever Pay, which is a licensed corporate entity with a money lending license from the Malaysian government. Fatfish intends to develop and launch a retail BNPL product and leverage any potential synergies with Smartfunding.

The Fatfish share price in 2021

The Fatfish share price was a beneficiary of the BNPL hype in February, when the company's shares went gangbusters from 3.5 cents to as high as 43 cents.

In response to an ASX price and volume query, the company said that "some ASX listed companies in the BNPL space have experienced recent strong demand and increases in prices, especially company(s) involved in the Asian geographical market."

As the hype began to cool down for BNPL shares, the Fatfish share price has slowly drifted lower, first consolidating around the 10 cent level around March before sliding lower to the 7 cent level in May. As of today's pause in trade, Fatfish shares are sitting at 7.6 cents.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned.  The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

2 ASX tech stocks to buy during an anticipated 15% to 20% sector pullback in 2025

Expert reveals 2 of his favourite tech stocks and at what prices we should buy them during a dip.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

Life360 shares: A generational opportunity to get rich?

I think the Life360 share price could more than double again in the year ahead.

Read more »

a woman sitting at a desk checks an old fashioned calendar resting against her wall as she sits with documents in front of her.
Technology Shares

Own WiseTech shares? You need to know about these dates in 2025

Put these dates in your calendar.

Read more »

a young child wearing a cardigan and thick black glasses places his hand on a nearly rounded object and his hair lifts at right angles to his head thanks to static electricity.
Technology Shares

Up 223% in a year, why this ASX 200 tech stock could keep surging higher in 2025

A leading expert expects the ASX 200 tech company to provide strong 2025 earnings guidance.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Pro Medicus shares jump to record high on big news

This high-flying stock keeps breaking records. Here's what is happening today.

Read more »

man thinking about whether to invest in bitcoin
Technology Shares

Should you buy WiseTech shares before earnings season?

Is this tech star a buy? Let's see what analysts are saying about it.

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Technology Shares

Could this undervalued ASX stock be your ticket to millionaire status?

I reckon this stock is on track to deliver significant growth.

Read more »

Technology Shares

2 of the best ASX 300 stocks to buy now

Bell Potter has named these as best buys. Here's what you need to know.

Read more »