Future FinTech Announces the Closing of the Acquisition of Sichuan Ticode Supply Chain Management Co., Ltd.
NEW YORK, April 19, 2021 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as Future FinTech", "FTFT" or "the Company"), a leading blockchain e-commerce company and a service provider for financial technology, today announced that on April 16, 2021, the Company closed its acquisition of a 60% equity interest in Sichuan Ticode Supply Chain Management Co., Ltd. ("Ticode") from Sichuan Longma Electronic Technology Co., Ltd. ("Longma"). As previously announced in the Company's press release on March 1, 2021, the Company and its wholly-owned subsidiary, Future Supply Chain Co., Ltd., entered into a definitive share exchange agreement (the "Agreement") with Longma and Ticode to acquire a 60% equity interest in Ticode from Longma.
The 60% equity interest in Ticode was valued at approximately $66.45 million and was paid in 7,789,882 shares of FTFT common stock priced at $8.53 per share. The Agreement also stipulates that an additional 5% of equity interest in Ticode shall be transferred to the Company at no cost should Ticode not achieve Earnings Before Interest and Taxes ("EBIT") of at least RMB 50.0 million (approximately $7.69 million) for the fiscal year ended December 31, 2021, and an additional 5% equity interest in Ticode shall be transferred to the Company at no cost should Ticode not achieve EBIT of at least RMB 57.5 million (approximately $8.85 million) for the fiscal year ended December 31, 2022.
Mr. Shanchun Huang, Chief Executive Officer of Future FinTech, stated, "We are pleased to consummate the acquisition of 60% of Ticode since it substantially enhances our competitiveness and brings strong financial performance and future growth potential to the Company. The acquisition represents a milestone in our business transformation strategy as we further expand in the fintech sector. Through the linking of finance and the real economy, we plan to build a sustainable platform for banks, manufacturing enterprises and suppliers as well as create a comprehensive financial services platform to further expand the value chain of our financial technology services."
Mr. Jiancao Wang, Chairman of Ticode said, "Future Fintech is in the process of building an international financial technology service network armed with advanced blockchain technology and Ticode is one of the leading supply chain companies in China. Becoming a part of FTFT will expand our international business channels, gain entry to a wide range of customers and help us to access the overseas capital markets. With the help of FTFT's expertise in blockchain technology, we believe that we will have a competitive advantage in the supply finance industry. The acquisition is a win-win for both companies."
The Company has also filed a Form 8-K for the completion of acquisition of Ticode with SEC on April 19, 2021 and will file complete financial statements of Ticode for the years ended December 31, 2019 and 2020 as soon as possible but no later than 71 days after the Form 8-K must be filed.
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://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.
SOURCE: Future FinTech Group Inc.
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SOURCE Future FinTech Group Inc.
