SOS Ltd. Announces the Sale of its P2P Business and its Focus on Becoming a Leading Health and Emergency Services Company in China
QINGDAO, China, Aug. 11, 2020 /PRNewswire/ -- SOS Limited, (NYSE: SOS) (formerly China Rapid Finance Limited, the "Company") today announced it has completed the disposition of its legacy P2P business after the satisfaction or waiver of all closing conditions. Proceeds from the disposition is to be used for working capital and general corporate purposes.
Given recent government regulations in China against the P2P industry, it became evident that the opportunity to grow the P2P business was limited. In addition, virtually all of the P2P business' assets are being held at the regulators request for the benefit of the platform lenders. Management believes that disposal of the P2P business is the most sustainable path for its next phase of growth, and that time and capital were therefore better focused on continuing the expansion of its rapidly growing health and emergency services business unencumbered by the issues surrounding the P2P business.
Asia-Pacific Consulting and Appraisal Limited ("APA") delivered its opinion to the Board of SOS Limited ("SOS") that, as of the date of the written fairness opinion and based upon and subject to the factors and assumptions set forth therein, the sale consideration to be received by SOS pursuant to the share purchase agreement was fair from a financial point of view to the shareholder of SOS. APA's opinion and analysis took into consideration factors including the legacy P2P business' operating environment, the assets and the earning opportunities available in that business.
Chairman Mr. Wang commented: "The legacy P2P business needed to be disposed so that we are able to focus all our energy on realizing our vision to become a leader in the health and emergency services industry in China. We are excited about what the future will bring."
For a detailed description of the transaction, please refer to the Company's current report on Form 6-K filed on August 7, 2020.
About SOS Limited
SOS Limited, through its operating subsidiary, SOS Information Technology Co., Ltd. ("SOS") is a high-technology company providing a wide range of services to its corporate and individual members, including marketing data, technology and solutions for emergency rescue services. SOS is focused on the research and development of big data, cloud computing, Internet of Things, blockchain and artificial intelligence. We have created a SOS cloud emergency rescue service software as a service (SaaS) platform with three major product categories, including basic cloud (medical rescue card, car rescue card, financial rescue card, mutual assistance rescue card), cooperative cloud (information rescue center, intelligent big data, intelligent software and hardware), and information cloud (News Today, E-Commerce Today). This system provide marketing-related data, technology solutions, and technology-driven big data to clients such as insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers and other service providers in the emergency rescue services industry. SOS has obtained a national high-tech enterprise certification, the title of "big data star enterprise" awarded by Gui'an New District Government, and has registered 11 software copyrights and 2 patents.
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties once the transaction is complete, and SOS's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Additional information concerning these and other factors that may impact our expectations and projections can be found in our periodic filings with the SEC, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2019. SOS's SEC filings are available publicly on the SEC's website at www.sec.gov. SOS disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.