HONG KONG, April 19, 2021 /PRNewswire/ -- Lion Group Holding
Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an
all-in-one trading platform that offers a wide spectrum of products
and services with a focus on Chinese investors, today announced
that its subsidiary Lion Wealth Limited (the "Buyer" or "Lion
Wealth"), a wholly-owned subsidiary of Lion, entered into an
antminer transfer and maintenance agreement (the "Agreement") with
Shanghai Minebaba Network Technology Co., Ltd. (the "Maintenance
Party") and its affiliate (the "Seller"), to acquire 5,000 brand
new units of Bitmain Antminers S9 Hydro (the "Equipment") in a
single transaction. The Equipment will be deployed in Sichuan, China and used for Bitcoin
mining.
Mr. Chunning (Wilson) Wang, Chief
Executive Officer of Lion, commented: "Crypto markets have observed
four major price cycles since 2010, which typically last durations
ranging for several years. Lion has decided to bring in this
technology to capture this trend and meet our customers' ongoing
demands to trade and invest in crypto assets. Following the
acquisition of Lion FinTech Group earlier this month, this new
movement marks another steady step to expand our business into the
crypto asset market. We believe that cryptocurrency will become a
major asset to our customers and drive long-term value."
Under the terms of the Agreement, ownership of the Equipment
will be transferred from the Seller to the Buyer for a total
price of about RMB17 million (about $2.6
million). The Equipment is expected to contribute revenue
(net of electricity cost) of RMB 30
million (about $4.6 million)
in 2021, based on 90PH/S of hashing power generated, estimated
power consumption and current Bitcoin price.
The deal is expected to close by May
2021, upon onsite inspection and acceptance and payment.
After the transaction is completed, the Maintenance Party will
continue to handle its operations. Utilizing the trading license
held by Lion FinTech Group in Dubai, Lion intends the Bitcoins awarded
through its mining activities for serving its customers' needs in
investing and trading crypto assets. Lion expects the lifetime of
the Equipment to be approximately three years.
About Lion
Lion Group Holding Ltd. (NASDAQ: LGHL) operates an all-in-one
trading platform that offers a wide spectrum of products and
services with a focus on Chinese investors. Through its
state-of-the-art technology, Lion offers contract-for-difference
(CFD) trading, insurance brokerage, futures brokerage, and
securities brokerage on its platform, which can be accessed through
applications available on the iOS, Android, Windows, and macOS
systems. Lion's customers are well-educated and affluent Chinese
individual investors residing both inside and outside the PRC as
well as institutional clients in Hong
Kong. Additional information may be found at
http://ir.liongrouphl.com.
Forward-Looking Statements
This press release contains, "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Lion's actual results may
differ from their expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate,"
"intend," "plan," "may," "will," "could," "should," "believes,"
"predicts," "potential," "might" and "continues," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, Lion's expectations with respect to future performance
and anticipated financial impacts of the Business combination, the
satisfaction of the closing conditions to the business combination
and the timing of the completion of the business combination. These
forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from expected results. Most of these factors are outside the
control of Lion and are difficult to predict. Factors that may
cause such differences include, but are not limited to: (1) the
inability to maintain the listing of the post-acquisition company's
ADSs on NASDAQ following the business combination; (2) the risk
that the business combination disrupts current plans and operations
as a result of the announcement and consummation of the
transactions described herein; (3) the inability to recognize the
anticipated benefits of the business combination, which may be
affected by, among other things, competition, the ability of the
combined company to grow and manage growth profitably and retain
its key employees; (4) costs related to the business combination;
(5) changes in applicable laws or regulations; (6) the possibility
that Lion may be adversely affected by other economic, business,
and/or competitive factors; and (7) other risks and uncertainties
to be identified in the proxy statement/prospectus relating to the
business combination, including those under "Risk Factors" therein,
and in other filings with the Securities and Exchange Commission
("SEC") made by Lion. Lion cautions that the foregoing list of
factors is not exclusive. Lion cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. Lion does not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based, subject to applicable
law.
Contacts
Lion Group Holding
Tel: +852 2820 9011
Email: ir@liongrouphl.com
ICR, LLC
William Zima
Tel: +1 203 682 8233
Email: ir@liongrouphl.com
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SOURCE Lion Group Holding Ltd.