IIG's Hui10 Signs Milestone CFCA Agreement for China Paperless Lottery Pilot, Triggers £5M Investment

If this scales, you get a modernised lottery with better oversight, faster settlement and a smoother customer experience – exactly the sort of evolution regulators and issuers tend to support when the security piece is watertight.

Funding unlocked: £5 million Helikon tranche at 91.5p per share, plus up to £15 million to follow

The CFCA Agreement also ticks a financing box. It satisfies “Milestone 1” under the Helikon Investment Agreement announced on 15 December 2025 and triggers the first £5 million equity investment into IIG at 91.5 pence per share. That price represents a pre-money fully diluted valuation of £200 million, as set out under the Helikon Agreement.

IIG expects to raise up to an additional £15 million from other investors on the same terms. The subscription process starts now, and the Company will update the market on the final amount once complete. Crucially, IIG states that, once this raise is completed alongside future amounts committed under the Helikon Agreement, it does not expect further funding requirements for Hui10 to achieve its strategic goals.

What could come next and how to think about scale

The agreement paves the way for a commercial pilot at provincial scale. A successful pilot could be the precursor to a nationwide rollout, subject to direction from the Ministry of Finance. While timings and provinces are not disclosed, the route of pilot‑then‑scale is clear, and the technical and regulatory scaffolding is now in place.

The alignment between Hui10, CFCA and UnionPay embeds Hui10 into China’s financial and payment infrastructure. That should support growth in transaction volumes, broader market participation and deeper integration with national data and compliance frameworks over time, if execution and regulatory approvals progress as hoped.

Key numbers and facts from the RNS

Triggered investment	£5 million at 91.5 pence per share
Implied pre-money valuation (fully diluted)	£200 million (per Helikon Agreement)
Potential additional raise	Up to £15 million on same terms
Pilot scope	Commercial provincial-scale paperless lottery pilot
Nationwide rollout	Subject to Ministry of Finance direction
Agreement term	Initial 5 years, then unlimited automatic annual renewals
CFCA footprint	Services used by 2,400+ financial institutions; subsidiary of China UnionPay
Lottery shop base (Lucky World context)	Approx. 200,000 lottery-only shops in China
Lottery participation (Hui10 aim)	From c.10% currently to 30%+ targeted

What this means for IIG shareholders

• Validation: CFCA’s involvement is strong validation of Hui10’s compliance and security architecture, which is vital in a regulated sector.
• Commercial pathway: A provincial pilot is the starting gun for live transactions, with the potential for national scale if regulators green‑light it.
• Funding visibility: Immediate £5 million plus up to £15 million on the same terms improves funding clarity. IIG also points to no further Hui10 funding needs once the Helikon commitments are in place.
• Strategic positioning: Deep integration with UnionPay and CFCA places Hui10 inside the core payments and certification rails – hard for competitors to replicate.

Risks, constraints and what’s not disclosed

• Regulatory timing: Nationwide rollout remains subject to Ministry of Finance direction. Timelines for the pilot launch and scale-up are not disclosed.
• Pilot execution: Technical integration across POS, certification, prize payout and tax settlement must perform flawlessly at scale.
• Commercial terms: Economics, revenue share, margins and the specific pilot province(s) are not disclosed.
• Ownership detail: IIG’s precise economic interest in Hui10 and how value flows back to IIG on scale-up is not detailed in this announcement.
• Funding completion: The additional up to £15 million raise is expected but not yet finalised; subscription details will follow.

My take: a meaningful de-risking step with clear catalysts ahead

This is a positive update. CFCA’s endorsement is a high bar to clear and is essential for compliant digital lottery issuance via UnionPay’s POS network. The structure – provincial pilot with the potential for national rollout – is sensible and regulator-friendly. The financing trigger at 91.5 pence per share and potential additional £15 million improves runway and signals confidence from backers under a £200 million pre-money fully diluted valuation framework.

The open questions are all about pace and proof: when the pilot starts, where it runs, and how quickly operational and regulatory milestones convert into transaction volume. If Hui10 executes and the Ministry of Finance directs broader deployment, the scale could be significant given the 200,000 lottery shops and state-grade infrastructure alignment. For now, this agreement materially strengthens Hui10’s position – and by extension IIG’s investment case – ahead of the next set of delivery milestones.