New York August 2021tenJapan / PR Newswire /-- Future FinTech Group Inc Group, a leading e-commerce and financial technology service provider based on blockchain technology (Nasdaq: FTFT, hereinafter referred to as "Future FinTech Group Inc", "FTFT" or "Company")TodayIt is announced that the company has completed the acquisition of 90% of the outstanding shares of Hong Kong Junxian Asset Management Co., Ltd. (hereinafter referred to as "Hong Kong Junxian assets") from Hong Kong Lefeng Enterprises Limited ("Hong Kong Lefeng"). The company issued press releases on July 16, 2020 and April 12, 2021 respectively. The company signed a share exchange agreement (the "Agreement") with Hong Kong Lok Fung, and signed a revised agreement (the "Amendment Agreement") on April 9, 2021 to acquire 90% of the outstanding outstanding shares of Hong Kong Junxian assets.
Hong Kong Junxian assets has a Class 4 "Securities Consulting" and Class 9 "Asset Management" financial licences issued by the Hong Kong Securities and Futures Commission (SFC). The company has been approved by the Hong Kong Securities Regulatory Commission to become a major shareholder in Junxian assets in Hong Kong. The partners of Junxian assets in Hong Kong now include major international banks and their customers are all high net worth customers. Hong Kong is recognized as an Asian financial centre and a leading asset management centre, with a large pool of international capital and fund managers.
According to February 2021,Greater China Evaluation Co., Ltd.The 100 per cent stake in Junxian assets in Hong Kong is valued at HK $189338353. Under the terms of the revised agreement, the total purchase price (the "purchase price") of the 90 per cent stake in Junxian assets in Hong Kong is HK $144000000 (about US $18701299), of which 60 per cent, or HK $86400000 (US $11220779), shall be paid according to 95 per cent of the closing price of the company's common shares on the Nasdaq stock market the day before the date of the revised agreement, or US $5.00 per share ("FTFT share"). The remaining 40% of the purchase price shall be paid in FTFT common shares ("profitability payment") in accordance with the profit before interest and tax ("EBIT") target of Junxian assets in Hong Kong in 2021 and 2022, as follows:
I. If Junxian assets in Hong Kong make a profit of HK $14000000 before interest and tax in 2021, the company should pay 20% of the purchase price, that is, HK $28.8 million, in the form of common shares.
Ii, if Hong Kong Junxian assets achieve a profit of HK $20000000 before interest and tax in 2022, the company should pay 20% of the purchase price in the form of common shares, that is, HK $28.8 million;
Iii, if the Hong Kong Junxian assets fail to achieve the profit target before interest and tax within a certain year, Hong Kong Lefeng shall pay cash equivalent to 10 times the difference between interest and tax before the company issues its profitability payment shares to Hong Kong Lefeng for that year.
More complete information is contained in form 8murk submitted to SEC on April 12, 2021 and its attachment.
Mr. Huang Shanchun, Chief Executive Officer of Future FinTech Group Inc, said: "We are very pleased to complete the acquisition of 90% of Junxian assets in Hong Kong, which is an important step in our expansion in the global financial services sector. We believe that as FTFT further expands its financial services over the next few years, we will have plenty of opportunities to integrate it with boutique financial services and to develop innovative business models to meet the needs of the investment community for capital growth and total return. Junxian Asset Hong Kong will work with our existing team to provide first-class asset management and investment consulting services to corporate clients and high net worth professional investors in Hong Kong.
Mr. Chan Shaoji, Chief Executive Officer and Director of Junxian assets, Hong Kong, said, "the management team of Junxian assets in Hong Kong consists of former senior executives of HSBC, Hong Kong Certified Public Accountants, with rich experience in asset management, investment banking and extensive contacts. We are very pleased that FTFT has become our major shareholder. Our business focus is to help customers increase their wealth and achieve their investment goals. While we focus on exploring potential industries and opportunities, we also take into account the interests of our customers and provide them with tailored and flexible investment strategies. We will take advantage of the additional resources, technologies and platforms provided by FTFT to further develop our business in Hong Kong and around the world. "
In addition, according to the results of the company's due diligence, due to failure to meet the relevant acquisition requirements, the company has terminated the intention to acquire 60% of the shares of Guangzhou Huika computer Network Services Co., Ltd.
In view of China's concern aboutRelated industriesUnder the new strict regulatory policy, the company decided to terminate the 51% equity acquisition intention of Mingtang Network Technology Co., Ltd., Xinjiang Changji Zhendong Economic Development Zone, Nanjing Rippens Electronic Technology Co., Ltd., and Nanjing Shunru Electronic Technology Co., Ltd.Acquisition intention. Although the company has terminated the above acquisition intention due to changes in the acquisition environment, the company's strategic focus is to continue to develop financial technology and services through acquisitions, while the company is actively looking in North America and the United Arab EmiratesOther M & A targetsAnd partners to quickly establish a leading competitive position in the industry.