NEW YORK, April 14, 2021 /PRNewswire/ -- Future FinTech
Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as "Future
FinTech", "FTFT" or "the Company"), a leading blockchain-based
e-commerce business and a fintech service provider, announced today
that the Company has signed an equity acquisition framework
agreement (the "Framework Agreement") to acquire a 51% equity
interest in Mingtang Network Technology Co., Ltd. (the "Mingtang
Network") from its shareholders (the "Sellers"). Mingtang Network
is located in the Changji Zhundong Economic and Development Zone in
the Xinjiang Autonomous Region of China. The Framework
Agreement is non-binding except for the 'Confidentiality and
Exclusivity' and 'Applicable Law and Dispute Resolution' sections
of the agreement.
Mingtang Network operates a cryptocurrency mining farm that
integrates big data collection, cloud storage and advanced computer
software and hardware operations into an industrial system of data
analysis and information storage. Phase I of Mingtang Network's
data center has a 50,000 capacity load for cryptocurrency mining
machines, the ability to run big data mining applications and is
fully operational. It also has 300,000 sets of mechanical and
electrical equipment on site such as standby or outsourcing
cryptocurrency mainframes, mining machine power supply modules,
etc., which are either owned by Mingtang Network or its clients
using the mining farm. Mingtang Network's
cryptocurrency mining farm has been granted all necessary
governmental approvals in China.
According to the Frame Agreement, the Company will acquire 51%
of the equity of Mingtang Network at a purchase price of
RMB 45.9 million (approximately
US$ 7.0 million) based on a valuation
of 100% of the equity of Mingtang Network of RMB 90 million (approximately US$ 13.8 million). However, the final purchase
price will be determined by both parties and will be based on
completion of a financial audit of Mingtang Network and pending the
Company's due diligence and a definitive agreement by the parties.
The Sellers promise that 2021 audited earnings before interest and
taxes ("EBIT") of Mingtang Network will be at least RMB 40 million (approximately US$ 6.1 million), and if this does not occur, the
Sellers agree to bear any shortfall attributable to this figure and
make the Company whole as to the projected EBIT with a cash
payment.
In addition, the Company and the Sellers agree to invest in the
construction of a Phase II data center of a 500,000 capacity load for cryptocurrency mining
machines within a time frame to be agreed to by both parties. The
total investment in the Phase II project is expected to be about
RMB 600 million (approximately
US$ 91.7 million), which will
be funded according to the
ownership percentage of Mingtang Network, i.e. 51% by the Company
and 49% by the Sellers.
Shanchun Huang, Chief Executive
of Future FinTech, commented, "We are excited about the
cryptocurrency mining farm sector and believe that it will continue
to achieve further growth and real-world economic viability. We
intend continue to purchase cryptocurrency mining machines, make
additional acquisitions of cryptocurrency mining farms and promote
the development of secure and evolutionary cryptocurrency
applications. Our goal is to become one
of the world's leading cryptocurrency mining
enterprise."
Xiang Lin, Chairman of
Mingtang Network, said, "Mingtang Network's data center has approvals for land planning,
environmental assessment, land occupation assessment and state grid
power access. Importantly, the partner supplying the electricity
for our data center is a branch of the China state grid, which has the advantage of
providing an ample power supply at a low cost. We believe that
Mingtang Network's currently operational Phase I data center
represents an elite standard of encrypted cryptocurrency digital
mining in terms of scale, engineering qualifications and
construction standards. We will continue to work closely with FTFT
to increase our computing power, expand our market share and seek
the maximum return for our shareholders."
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://ftft.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
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"could," "intend," "target" and other similar words and expressions
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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.