MONTVALE, N.J., Nov. 23, 2020 /PRNewswire/—MICT, Inc.
(Nasdaq: MICT) (the Company), today announced that its
wholly-owned subsidiary GFH Intermediate Holdings Ltd.
(GFHI), through an indirect wholly-owned operating company, signed
a number of significant new insurance agency contracts which the
Company anticipates to generate significant recurring monthly
revenues, potentially up to several millions of dollars per month,
beginning early in the first quarter of 2021.
Scheduled to launch in December
2020, GFHI's insurance division is led by a highly-decorated
management team recruited from a number of China's largest insurance companies. The
signing of these significant new contracts within only a few weeks
of the division's launch demonstrates its management team's ability
and their commitment towards meeting the division's year 1 targets,
of more than $250 million of revenue
and more than $10 million of gross
margins. Such a steep growth trajectory also reflects well in terms
of meeting the significantly higher revenue and gross margin
targets for years 2 and 3.
"The early success in signing these valuable new contracts is a
testament to the combination of our leading-edge technology
platform, our innovative business model and the exceptional
management team we have been able to attract," stated MICT's CEO,
Darren Mercer. "We have achieved a
number of key milestones since the acquisition of GFHI in September
and are already ahead of schedule, including in relation to our
operating Key Performance Indicators and financial metrics, and we
are confident we will continue to rapidly grow our insurance
business, aided by our partnerships with the leading insurance
groups in China."
"We have also markedly increased cash reserves and strengthened
our balance sheet, which is enabling us to significantly accelerate
growth and take advantage of numerous expansion opportunities
across all our business verticals," Mercer concluded.
Third Quarter and Recent Highlights Include:
- Acquired 100% of GFHI giving MICT ownership of the platforms,
technology and businesses that GFHI has built in the global fintech
space, with the initial focus on China's burgeoning fintech market
- Cash balance of $18.6 million as
at 30th September
2020
- Closed on an additional $25
million through a registered direct offering on November 4, 2020
- Recruited top class operational and management teams for both
its insurance and stock trading divisions
- Acquired initial 9% stake in the Hong
Kong securities and investments firm, with balance of 91% to
be acquired upon receipt of regulatory approval for a total
purchase price of $3 million. The
brokerage firm currently has approximately $2.1 million in cash and equivalents on its
balance sheet and is licensed to transact in substantial markets
including Hong Kong, the U.S. and
China, including China
A-Shares
China's nascent market for
insurance products is already the second largest in the world and
is forecast to reach $2.36 trillion
by 2032, eclipsing the U.S. market by almost $1 trillion. Online stock trading volumes in
China reached nearly $2 trillion in 2019 and are expected to continue
to climb significantly in the foreseeable future.
The data included herein with respect to the Chinese insurance
market was made public by the Swiss Re Institute and Mordor
Intelligence.
About MICT
MICT, Inc. (NasdaqCM: MICT) operates through its
subsidiaries, GFH Intermediate Holdings Ltd. (GFHI) and
Micronet Ltd. (Micronet). GFHI's versatile proprietary trading
technology platform is designed to serve a large number of high
growth sectors in the global fintech space. Primary areas of focus
include online brokerage for equities trading and wealth management
services and sales of insurance products in several high-growth
foreign markets including Asia where GFHI, through
several operating companies, own a substantial propriety database
of users. Micronet operates in the growing telematics and
commercial Mobile Resource Management market, mainly
in the United States and Europe. Micronet designs,
develops, manufactures and sells mobile computing solutions that
provide fleet operators and field workforces with computing
solutions in challenging work environments.
Forward-Looking Statements
This press release contains express or implied forward-looking
statements within the Private Securities Litigation Reform Act of
1995 and other U.S. Federal securities laws. These
forward-looking statements include, but are not limited to,
statements related to revenue targets, the growth of the Chinese
Insurance market and other statements that are not historical
facts. Such forward-looking statements and their implications
involve known and unknown risks, uncertainties and other factors
that may cause actual results or performance to differ materially
from those projected. The forward-looking statements contained in
this press release are subject to other risks and uncertainties,
including those discussed in the "Risk Factors" section and
elsewhere in the Company's annual report on Form 10-K for the year
ended December 31, 2019, Form 10-Q for the quarter ended
September 30, 2020 and in
subsequent filings with the Securities and Exchange
Commission. Except as otherwise required by law, the Company is
under no obligation to (and expressly disclaims any such obligation
to) update or alter its forward-looking statements whether as a
result of new information, future events or otherwise.
View original
content:http://www.prnewswire.com/news-releases/micts-insurance-division-signs-contracts-expected-to-generate-significant-recurring-monthly-revenues-301178860.html
SOURCE MICT