Future Fintech and Benma (Shenzhen) Industrial Co. Ltd. Signed an Equity Acquisition Frame Agreement
BEIJING, Sept. 15, 2020 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) (hereinafter referred to as "Future Fintech", "FTFT" or "Company" ") a leading blockchain e-commerce company and a service provider for financial technology, today announced it has signed an equity acquisition frame agreement ("Frame Agreement") with Benma (Shenzhen) Industrial Co., Ltd. ("Benma"), and plans to acquire no less than 60% of the shares of Sichuan Tema Supply Chain Management Co., Ltd. ( "Tema") from Benma. The Frame Agreement is non-binding except for the "Confidentiality and Exclusivity" and "Applicable Law and Dispute Resolution" sections.
According to the Frame Agreement, FT Commercial Management (Beijing) Co., Ltd., a newly established wholly-owned subsidiary of FTFT, will acquire no less than 60% of the equity shares of Tema through a share exchange with Benma.
Tema provides financial services for supply chain industry and achieved revenue RMB 3.36 billion (approximately $480 million) and net profit RMB 76 million (approximately $10.86 million) in 2019 based upon unaudited financials under Chinese GAAP. Tema's business includes procurement agent services, sales agent services, inventory pledged loan services, and supply chain financing intermediary services. Tema's supply chain related services cover electronic components, technology service to supply chain data management for the electronic industry, supply chain management for various electronic components and materials, metal materials, and plastic raw materials.
The acquisition price will be determined according to the audited net profit of Tema in 2019 subject to the result of the due diligence, and the consideration will be paid in FTFT's common stock, and the price of FTFT's common stock will be based on 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 exchange agreement.
Mr. Shanchun Huang, Chief Executive Officer of FTFT, stated, "The acquisition of Tema will bring greater performance growth to the Company and returns to our shareholders, and it is also key to our active pursuit of business transformation strategy. It will help us to gain experienced staff and customer resources in the corporate financial services area that we also plan to enter. With this acquisition and through the linking of capital and the real economy, FTFT plans to build a sustainable and mutually beneficial platform for banks, enterprises and the supply chains as well as to create a comprehensive financial consulting and services platform to further expand the chain of our financial technology services."
Mr. Jiancao Wang, Chairman of Tema said, "FTFT is in the process to build an international financial technology service network. Becoming a part of FTFT will expand our international business channel, help us gain access to overseas capital market and a wide range of diversified customers, which are essential to the steady growth of our business. The potential acquisition will create a win-win future for both companies."
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 technical service and support for real name and blockchain based assets and their operating entities. The Company is also engaged in 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 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.