Future FinTech Announces the Closing of the Acquisition of Sichuan Ticode Supply Chain Management Co., Ltd.
Future FinTech Group Inc., 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.
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