NEW YORK, Sept. 3, 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 30, 2021, the Company
signed an equity acquisition term sheet (the "Term Sheet") to
acquire 51% of the equity of Shanghai Dianfa Internet Technology
Co., Ltd. ("Dianfa Technology"). The Term Sheet represents terms
for a proposed transaction subject to definitive documentation and
is non-binding except for its 'Exclusive Period' and
'Confidentiality'; and 'Governing Law' sections.
According to the Term Sheet, the Company plans to acquire 51% of
the equity of Dianfa Technology at a purchase price of RMB 17,850,000 (approximately US$ 2,762,730) of which RMB 6,000,000 (approximately US$ 928,650) will be paid in cash as a capital
investment in Dianfa Technology and RMB
11,850,000 (approximately US$
1,834,080) will be paid in shares of FTFT common stock to
the selling shareholders of Dianfa Technology. The acquisition will
be subject to legal and financial due diligence on the part of the
Company.
Through this acquisition, FTFT plans to enter the key supply
chain finance business of small and medium sized enterprises
("SMEs") and the microfinance sector since these entities are often
not able to access bank loans as larger businesses can in
China. As this represents a vast
number of enterprises that have ongoing capital needs, the Company plans
upon developing a financial ecosystem to include financial and
lending institutions, merchants, retail businesses and other supply
side services, embedded with
financial technology and communications, to create a highly evolved and
efficient platform to optimize capital flows for SMEs and
microfinance companies.
Dianfa Technology provides digital management services and
high-frequency small loan assistance services to micro, small and
medium-sized businesses and their suppliers based on its innovative
smart retail SaaS supply chain system. Dianfa Technology uses
financial technology capabilities such as mobile Internet, big
data, artificial intelligence, cloud computing and blockchain
analytics to help financial institutions provide low interest
collateral-free revolving credit products and services to micro and
small merchants across the entire retail industry business chain to
meet their funding needs. These capital needs are often of a
'short, small, frequent and urgent' variety and are essential in
terms of supporting the operating needs of microbusinesses and
small merchants.
Shanchun Huang, CEO of Future
FinTech, commented, "We estimate that there are millions of
microbusinesses in China which
represents a tremendous opportunity for digital management, lending
and payment processing companies such as Dianfa Technology.
Further, we anticipate that this potential acquisition will enhance
our competitive advantages as well as create important synergies
with our existing capabilities in supply chain finance."
"In addition, we believe that FTFT's strong blockchain
development capabilities and rich application experience will
enable us to evolve Dianfa Technology's current smart retail SaaS
supply chain system to a next business model architecture. With our
increasing geographical reach, we foresee the potential to realize
decentralized high-frequency small transactions for small and
medium sized businesses across the globe," continued CEO Huang.
"Our goal is to become a leading financial technology company
and provide an array of individual and business customers with
digital inclusive financial services and in doing so, to maximize
returns to our shareholders," concluded CEO Huang.
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"), a cross-border e-commerce platform (NONOGIRL), an
incubator for blockchain based application projects and financial
services for the supply chain industry. 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://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,
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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.
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SOURCE Future FinTech Group Inc.