NEW YORK, March 23, 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 March 22, 2021, a
wholly-owned subsidiary of the Company, Future Commercial Group
Co., Ltd., signed an equity acquisition frame agreement ("Frame
Agreement") with Guang Zhou Hi-Card Computer Network Service Co.,
Ltd. ("Guang Zhou") to acquire 60%
of the shares of Guang Dong Hi-Card Business Service Co., Ltd.
("Hi-Card"). The Frame Agreement is non-binding except for the
'Confidentiality and Exclusivity' and 'Applicable Law and Dispute
Resolution' sections of the Frame Agreement.
Hi-Card is a financial technology service provider that provides
payment settlement services primarily for small and medium-sized
enterprises as well as financial institutions. It is recognized as
a national high-tech enterprise and holds a payment business
license issued by the People's Bank of China and the Central Bank
of China. Hi-Card was named one of "China's Potential Enterprises"
from 2013 - 2015 by Forbes
China.
Hi-Card achieved net profit of RMB 4.8
million (approximately $0.7
million) for fiscal year ended December 31, 2019 based on its audited financials
under Chinese GAAP. The acquisition price for the 60% equity
interest of Hi-Card is estimated to be RMB 60.0 million (approximately $9.2 million) subject to the results of due
diligence by the Company and final negotiation by the parties, with
50% of the payment to be made in cash and 50% in FTFT's common
stock, the price of which will be based upon the average closing
price of FTFT's common stock on the Nasdaq during the 10 trading
days before the signing date of the final definitive share purchase
agreement.
Mr. Yi Yang, Chairman of Hi-Card,
said, "Hi-Card currently serves more than 400,000 merchants, and
over the last three years it has recorded an average of processed
payments of RMB 20 billion which is
approximately US$3 billion per year
with average annual transaction volume of RMB 110 billion which is
approximately US$17 billion
over the last three years. Hi-Card serves many companies in
China and has established strong
business relationships with China UnionPay, major commercial banks
and industry associations, and it has established an excellent
reputation in the industry. Future FinTech has a highly experienced
management team as well as a team of experts in blockchain
technology which will help Hi-Card to expand its growth and market
penetration."
Mr. Yang continued, "Hi-Card has focused on the field of
electronic transaction payments and information processing for many
years and we believe that the cooperation between the two parties
will deepen block chain technology applications in the payment and
settlement field. We will continue to provide first-class network
design, systems integration, technical support, terminal market
promotion and other solutions for the finance, public services and
electronic payment fields to form a comprehensive financial payment
ecological chain."
Mr. Shanchun Huang, Chief Executive Officer of Future
FinTech, said, "Hi-Card is a highly active player in the payment
processing space in China. It has
accumulated a great deal of experience and has translated this into success in
financial technology, especially in the development and promotion
of application systems in the electronic payment field. We are
pleased to have entered into this initial frame agreement as it
represents yet another major step in expanding our footprint in
financial technology services."
Mr. Huang continued, "We are confident that we will be able to
create synergies to further capitalize upon Hi-Card's success in China to date. Our goal is to build a
sustainable and dynamic financial technology services for
enterprises, financial institutions and supply chains that offer
safe and cost-effective solutions that encompass a wide variety of
business and management needs."
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. 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.ftftex.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,
2019 and otherwise in our SEC reports and filings,
including the final prospectus for our offering. 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.