QINGDAO, China, March 9, 2021 /PRNewswire/ -- SOS Limited, a
corporation organized under the laws of the Cayman Islands (NYSE: SOS) (the "Company,"
"we," "us" or "SOS") issued responses to frequently asked
shareholder inquiries today. These responses were issued in
an effort to facilitate communications with its shareholders and
improve investor relations. The questions and answers appear
Q: What is the
nature of your business?
A: We provide a wide
range of data mining and analysis services to our corporate and
individual members, including providing marketing data, technology
and solutions for insurance companies, emergency rescue services,
and insurance product and health care information portal in
China. Our mission is to make it
easier, safer and more efficient for our clients to obtain and
process the data of their target customers.
We primarily address the large unmet demand for
marketing-related data for clients such as insurance companies,
financial institutions, medical institutions, healthcare providers
and other service providers in the emergency rescue services
industry by creating a SOS cloud emergency rescue service software
as a service (SaaS) platform.
Recently, we have launched our crypto mining business, and aim
to start infrastructure services in blockchain security for our big
data insurance marketing as well as provide insurance and banking
services for digital assets and crypto currencies.
Q: What is your
A: Our headquarters
were previously located in Shijiazhuang,
China at Building B Floor 14, Lehuo Building, No.128 Yuhua
West Road, Qiaoxi District, Shijiazhuang, Hebei Province. As
previously announced on July 31,
2020, we agreed to relocate our headquarters to the Qingdao
Free Trade Zone. The free trade zone offers a number of
government-subsidized benefits and privileges to corporate
residents. To take immediate advantage of these benefits and
privileges, the free trade zone allocates a temporary address to
each corporate resident during the construction of the resident's
permanent address. Our temporary address was 888 Changbaishan
Road, Jiudingfeng Building Suite 8888, Qingdao Area, China (Shandong) Pilot Free Trade Zone, Qingdao
China. This is a shared, virtual address used by all new
residents. The use of temporary corporate addresses is
standard practice in the free trade zone. After completing
construction and installing our furnishings, we recently moved into
our new headquarters building located at Building 6, East Seaview
Park, 298 Haijing Road, Yinzhu Street, West Coast New District,
In addition to our headquarters, the Company has a number of
different locations throughout China for branch offices and
subsidiaries. In particular, our crypto currency mining rigs
are located is various, confidential locations. We relocate
our mining rigs from time to time in order to take advantage of
lower electricity costs. The Company does not disclose the
exact address of the mining rigs in order to maintain the security
of the rigs and to protect them from our competitors.
Q: How did the
company acquire crypto currency mining rigs, in spite of a
world-wide shortage of such rigs? Who is HY
A: In January 2021, SOS announced that it was expanding
its existing secure and insurance business into the protection of
crypto currencies and digital assets, which have historically
suffered from a high incidence of theft and loss. The Company
also saw certain synergies and opportunities to expand its business
into crypto currency mining. Through its industry
connections, the Company identified an entity in Shenzhen, China that was offering a number of
used mining rigs for sale. The Company felt this was a good
opportunity to accelerate the Company's expansion into
crypto-mining and to build capabilities that would enhance our
digital security and insurance businesses.
An important consideration for the seller was to preserve the
confidentiality of its identity. In order to do this, the
seller established HY International Group New York Inc. ("HY
International") as its U.S. affiliate. This U.S. affiliate
was the contractual counterparty who sold 15,645 used mining rigs
to the Company.
Q: What is the
status of these mining rigs?
A: The first batch of
5,000 rigs was received on or about February
9, 2021. The second batch of 5,000 rigs was received
on or about February 24, 2021.
The third batch of 5,645 rigs is expected to be delivered on or
about April 15, 2021, although the
actual delivery date is subject to a number of factors which could
accelerate or delay their delivery. The Company has already
paid for all three batches, with a small holdback that will be paid
upon delivery of the third batch. The first batch of mining
rigs have been put into operation, and are subject to intermittent
down-time for maintenance, adjustment and reconfiguration.
Q: What are the
specifications and models of these mining rigs?
A: The mining rigs
purchased from HY International were previously used. They
are designed to mine Bitcoin and Ethereum. The mining rigs
are of various specifications. Some of the rigs include
components which are similar to those contained in the HY-Momentum
T2T and HY-A10 Pro, although they are not necessarily these
particular branded models. You can find a video of some of
our mining rigs at http://www.sosyun.com/.
Q: What is the
status of the Company's acquisition of FXK?
A: FXK Tech
Corporation ("FXK") is a blockchain service provider organized
under the laws of British
Columbia, Canada. SOS and FXK entered into a
non-binding letter of intent on January 18,
2021 for SOS to acquire FXK. As previously announced
on January 19, 2021, the letter of
intent was non-binding in nature, subject to due diligence,
negotiation and execution of a definitive acquisition agreement,
SOS board approval and NYSE approval. Since January 18, the Company has been conducting and
has now concluded due diligence on FXK. After discussion
among the Company's board of directors, SOS has determined for
various reasons, not to pursue the transaction with FXK.
Q: Where can I find
more information about the Company?
A: The ADRs of the
Company are publicly listed on the New York Stock Exchange.
As such, we are subject to the information reporting requirements
of the United States Securities Exchange Act of 1934, as amended,
that are applicable to foreign private issuers. In accordance
with these requirements, we file annual reports on Form 20-F,
reports of foreign issuers on Form 6-K and other information with
the SEC. You may inspect, read (without charge) and copy the
reports and other information we file with the SEC at the SEC's
Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549. You may obtain
information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330. The SEC also maintains an
internet website at www.sec.gov that contains our filed reports and
other information that we file electronically with the SEC.
We also maintain a corporate website at http://www.sosyun.com/,
where you can find further information about us.
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 the
Company's expected delivery of mining rigs, the anticipated hash
power of our mining rigs, our intention to provide blockchain
security services and insurance and banking services for digital
assets and crypto currencies, and the business plans, objectives,
expectations and intentions of the Company. 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.
SOS may not realize its expectations, and its beliefs may not prove
correct. 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
SOURCE SOS Limited