HONG KONG, Nov. 18, 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 and developer of new growth products that include SPAC
sponsorship, NFT, and metaverse-related initiatives, today
announced it signed a letter of intent with Hong Kong New Full Rich
Ltd. ("New Full Rich"). Under this investment agreement, the two
parties will cooperate to construct and operate an encrypted
digital currency mine project ("the Project") in Tajikistan through Ganj Technology (the
"Target Company"), a company owned by New Full Rich.
New Full Rich specializes in the construction, development and
operation of overseas digital mines and digital mining business.
The Target Company has received strong support from Tajikistan's government, including the
President's Office and 12 government departments. The first phase
of the Project will focus on a free trade economic zone,
establishing a 150,000-load mining site that incorporates industry
licenses, energy loads, electricity prices and other relevant
operating conditions, in addition to signing a sole protection
agreement with the free trade economic development zone. The first
phase of construction for the digital mine infrastructure and
power-on operation is expected to be completed in the first quarter
of 2022, and the project's annual profit is expected to be no less
than US$25 million. In addition, the
two groups will gradually promote the construction of a
300,000-load mine field for the second phase of the Project.
Accordant to the agreement, Lion Group will issue 5,000,000
shares to New Full Rich at a price of US$3.00 per share in exchange for 20% of the
Target Company's enlarged shares. Lion will work closely to execute
the Project and expects to achieve profit sharing of US$5 million in 2022. In addition, Lion can
exercise priority to purchase 10,000 WhatsMiner M series mining
machines from New Full Rich with operational hashing power ranging
from 60 to 62 terahashes per second. Upon installation and initial
use of the mining machines, Lion expects to generate an estimate of
approximately 3.38 BTC per day. According to the current price of
cryptocurrency, daily income will be approximately US$220,000. After deducting 22% for electricity
fees and subsequent machine maintenance costs, annual profit is
expected to reach US$62 million with
attractive return-on-investment in the long-term if operations go
as expected.
Mr. Chunning (Wilson) Wang, CEO
of Lion, commented: "Tajikistan
has unique advantages in water resources, which is central to the
development of the digital mining industry. Through this project
with New Full Rich, Lion's investment and operations in digital
mining in Central Asia will create
valuable achievements and mark another solid step for Lion in the
global digital asset industry. As the era of the digital economy
continues to expand, we believe there is huge growth potential in
the cryptocurrency market. Following this trend and seizing the
opportunity, Lion will accelerate development and innovation in the
global digital asset field as we continue to create meaningful
value for our shareholders."
About Lion
Lion Group Holding Ltd. (Nasdaq: LGHL) operates an all-in one,
state-of-the-art trading platform that offer a wide spectrum of
products and services, including (i) total return service (TRS)
trading, (ii) contract-for-difference (CFD) trading, (iii)
insurance brokerage, and (iv) futures and securities brokerage. In
addition, Lion owns a professional and experienced SPAC sponsorship
team to become a leader in the SPAC arena, helping guide private
companies through their listing journey while creating value for
Lion itself. Lion is also fully committed to building the world's
top one-stop, cross-chain, high-expansion non-fungible token (NFT)
marketplace and entering metaverse space through blockchain
technology. 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.
Contact
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.