NEW YORK, Aug. 10, 2021 /PRNewswire/ -- Future FinTech
Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as Future
FinTech", "FTFT" or "the Company"), a leading blockchain-based
e-commerce business and a fintech service provider, announced today
that on August 6, 2021, the
Company closed its acquisition of 90% of the issued and outstanding
shares of Nice Talent Asset Management Limited ("NTAM"),
a Hong Kong-based asset management company, from Joy
Rich Enterprises Limited ("Joy
Rich").
As previously announced in the Company's press releases on
July 16, 2020 and April 12, 2021, the Company entered into a Share
Exchange Agreement (the "Agreement"), amended on April 9, 2021 (the "Amendment"), with
Joy Rich to acquire 90% of the
issued and outstanding shares of NTAM.
NTAM is licensed under the Securities and Futures Commission
of Hong Kong ("SFC") to carry out regulated activities in
'Type 4: Advising on Securities and 'Type 9: Asset Management'. The
Company has received approval from
the SFC to become a substantial
shareholder of NTAM. NTAM's current business partners include major
international banks and its clients are high net worth customers.
Hong Kong is widely recognized as
a leading asset management center in Asia with a large concentration of
international fund managers.
Based upon a valuation report prepared for the Company by
Greater China Appraisal Limited, a 100% equity interest of NTAM was
valued at HK$189,338,353 in
February 2021. Pursuant to the terms
of the amended Agreement, the total purchase price for a 90% equity
interest in NTAM (the "Purchase Price") is HK$144,000,000 (approximately US$18,701,299), of which 60% of the Purchase
Price, or HK$86,400,000 (approximately US$11,220,779)
shall be paid in shares of common stock of the Company based on 95%
of the closing price of the shares of Company's common stock on the
Nasdaq Stock Market prior to the date of the Amendment which is
calculated to be $5.00 per share (the
"FTFT Share Price"). The remaining 40% of the Purchase Price shall
be paid in FTFT common stock (the "Earn-Out Shares") according to
the achievement of EBIT goals by NTAM for 2021 and 2022, as
follows:
i. If NTAM achieves EBIT of HK$14,000,000 in 2021, the
Company shall pay 20% of the Purchase Price, which is
HK$28,800,000, in shares of
common stock of the Company based on the FTFT Share Price;
ii. If NTAM achieves an EBIT of HK$20,000,000 in 2022, the
Company shall pay the final 20% of the Purchase Price, which
is HK$28,800,000, in shares of
common stock of the Company based on the FTFT Share Price; and,
iii. If NTAM does not achieve its EBIT goals for a given year, a
fee equal to ten times the EBIT shortfall amount shall be paid by
Joy Rich to the Company before the
Earn-Out Shares for that year are issued from the Company to
Joy Rich.
More complete information of the Amendment is set forth in
the Form 8-K and its exhibit filed with the Securities and Exchange
Commission on April 12, 2021.
Mr. Shanchun Huang, Chief Executive Officer of Future
FinTech, stated, "We are pleased to acquire 90% of Nice Talent
Asset Management as it represents a major step forward in our
ongoing expansion into the global financial services sector. We
believe that there is a substantial opportunity to integrate
fintech with boutique financial services and develop an innovative
business model that meets that needs of the investment community
for capital growth and total return as fintech further evolves the
financial services sector in the years ahead. The Company plans
upon creating synergies with our current capabilities to offer
best-in-class asset management and investment consulting services
for both corporate customers and high net-worth professional
investors in Hong Kong."
Mr. Chan Siu Kei, Chief Executive Officer and Director of
NTAM stated, "The management team of NTAM includes former senior
executives of HSBC and Hong Kong
certified public accountants with deep experience in asset
management and investment advisory services who also have extensive
contacts in the industry in Hong Kong. We are excited to move
forward with this highly strategic partnership with Future FinTech
and their leading-edge approach in the financial services sector.
Our business focus is to work alongside our clients to help them
grow their wealth and achieve their investment goals. In every
market environment, we specialize in uncovering potential sector
winners and opportunities that align with clients' interests while
offering tailored and flexible investment strategies. We will
leverage the additional resources, technology and platform provided
by FTFT to further develop our business in Hong Kong and
globally."
In addition, due to a new and more strict regulatory policy
recently announced by the Chinese government and China's central bank regarding to the
cryptocurrency sector, the Company has determined to terminate
discussions related to its cryptocurrency and mining related
potential acquisitions in China
that it previously announced earlier this year. This pertains to the potential acquisition
of a 51% equity interest in
Mingtang Network Technology Co., Ltd., the potential acquisition of
Nanjing Ribensi Electronic Technology Co., Ltd., and the potential
acquisition of 20,000 Antminer bitcoin mining machines from Nanjing
Shunru Electronic Technology Co., Ltd.
The Company also has terminated discussions related to the
potential acquisition of 60% of the shares of Guang Dong Hi-Card
Business Service Co., Ltd. as a result of the findings of its due
diligence.
Despite the changes in circumstance of these potential
acquisitions, the Company remains committed to its strategy of pursuing acquisitions for
value creation and growth. We will be assessing new potential
crypto mining farm and partnering opportunities in North America and the United Arab Emirates. We remain optimistic
about our future opportunities to create a comprehensive financial
services platform and fintech enterprise, and look forward to
developing a strong competitive position in these sectors in the
years ahead.
About Future FinTech Group Inc.
Future FinTech Group Inc. ("Future FinTech", "FTFT" or the
"Company") is a leading blockchain e-commerce company and a
service provider for financial technology incorporated
in Florida. The Company's operations include a
blockchain-based online shopping mall platform, Chain Cloud Mall
("CCM"), an incubator for blockchain based application projects,
and supply chain financing and services. The Company is also
engaged in the development of blockchain based e-Commerce
technology as well as financial technology. For more information,
please visit http:/www.ftft.com/.
Safe Harbor Statement
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended, or the
Exchange Act. Forward-looking statements include statements with
respect to our beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond our control, and which may cause
the actual results, performance, capital, ownership or achievements
of the Company to be materially different from future results,
performance or achievements expressed or implied by such
forward-looking statements. All statements other than statements of
historical fact are statements that could be forward-looking
statements. You can identify these forward-looking statements
through our use of words such as "may," "will," "anticipate,"
"assume," "should," "indicate," "would," "believe," "contemplate,"
"expect," "estimate," "continue," "plan," "point to," "project,"
"could," "intend," "target" and other similar words and expressions
of the future.
All written or oral forward-looking statements attributable
to us are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties described in our annual report on Form 10-K for the
year ended December 31, 2020 and our other reports and
filings with SEC. Such reports are available upon request from the
Company, or from the Securities and Exchange Commission, including
through the SEC's Internet website
at http://www.sec.gov. We have no obligation and do not
undertake to update, revise or correct any of the forward-looking
statements after the date hereof, or after the respective dates on
which any such statements otherwise are made.
View original
content:https://www.prnewswire.com/news-releases/future-fintech-announces-closing-of-nice-talent-asset-management-acquisition-and-pending-acquisitions-update-301351523.html
SOURCE Future FinTech Group Inc.