SHANGHAI, May 18, 2020 /PRNewswire/ -- China Rapid Finance
Limited (NYSE: XRF) (the "Company") today announced the
closing of the asset injection and private placement transactions
on May 15, 2020. Upon closing of the
transactions, Yong Bao Two Ltd. ("YBT"), a holding company
that controls SOS Information Technology Co., Ltd. ("SOS")
via contractual arrangements now becomes a wholly owned subsidiary
of the Company.
YBT, through its consolidated subsidiaries, is a significant
player in the emergency rescue business providing emergency
healthcare services, emergency roadside assistance, emergency
living assistance, and other rescue services in China. XRF's fin-tech business will drive
cross-sell opportunities and leverage funding sources from SOS'
portfolio. The Company now has significant growth potential with
the combination of SOS' emergency rescue services and XRF's
fin-tech services' member base, which represents over 55 million
members combined. SOS' year over year revenue growth rate
accelerated again in Q1-20 to 52%(unaudited).
Mr. Yandai Wang, CEO of SOS, has been appointed as the Executive
Chairman and CEO of the Company. Mr. Wang has over 20 years of
industrial experience in emergency rescue, telecom and call center
services. He has been a visionary leader in the emergency rescue
industry in China which has
experienced explosive growth in the past decade.
Mr. Douglas Brown, an independent
director of the Company, founder of DLB Capital and former Vice
Chairman-Investment Banking at Morgan Stanley, has been appointed
as the Non-Executive Chairman of the Board of XRF.
The XRF Board has also appointed two new independent directors
nominated by YBT, Mr. Jonathan Zhang
who serves as the Chairman of 5C Group International Asset
Management and Mr. Wenbin Wu who
serves as the Chairman of Shenzhen Rongde Investments Ltd. and
Shenzhen Rongde Enterprise Management Advisory Company. Both new
directors will join the Company's Audit and Compensation
Committees. This brings the Company's board to seven members, three
of which are independent directors.
The Company will be holding an investor call to introduce the
new management and discuss strategic plans and expectations.
Thursday, May 21 at
4:30pm EST.
To join the conference: +1 (435) 777-2200 Conference ID
05212020
Additional information about the Company's post-closing business
will be made available in a subsequent 6-K filing.
About China Rapid Finance
China Rapid Finance (NYSE: XRF) is a holding company operating
in fin-tech and emergency rescue services business. Its fin-tech
business offers award-winning decisioning technology and marketing
services that addresses China's
growing consumer credit market. The Company's newly acquired
subsidiary, Yong Bao Two Ltd. ("YBT"), provides wide range
of emergency rescue services to its corporate and individual
members in China. YBT's operating
subsidiary, SOS Information Technology Co., Ltd. ("SOS"),
provides various types of membership cards to individual members in
large corporations as part of employee benefits. Its products
include SOS Medical Rescue Card, SOS Auto Rescue Card, SOS
Financial Rescue Card, and SOS Life Rescue Card. SOS utilizes cloud
and other cutting-edge technologies to provide emergency rescue
services in a new fashion, including its app based mobile platform,
cloud call centers and large data centers. SOS has contractual
service agreements with major banks, insurance companies, internet
companies, and telecom providers in China.
Forward-Looking Statements
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 timing
of the proposed transaction; the business plans, objectives,
expectations and intentions of the parties once the transaction is
complete, and XRF's estimated and future results of operations,
business strategies, competitive position, industry environment and
potential growth opportunities. 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. 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 statements.
The following factors, among others, could cause actual results
to differ materially from those described in these forward-looking
statements: the outcome of any legal proceedings that have been, or
will be, instituted against XRF or other parties to the Agreements
following the consummation of the transactions described therein;
the ability of XRF to meet the NYSE listing standards following the
closing of the transactions; the inability to integrate the YBT
business with the current business; risks that the integration
disrupts current plans and operations and the potential
difficulties in employee retention as a result of the consummation
of the transactions; changes in applicable laws or regulations; the
ability of the combined company to meet its financial and strategic
goals, due to, among other things, competition; the ability of the
combined company to grow and manage growth profitability, maintain
relationships with customers and retain its key employees; the
possibility that the combined company may be adversely affected by
other economic, business, and/or competitive factors; and other
risks and uncertainties described herein, as well as those risks
and uncertainties discussed from time to time in other reports and
other public filings with the Securities and Exchange Commission
(the "SEC") by XRF.
Additional information concerning these and other factors that
may impact our expectations and projections can be found in our
periodic filings with the SEC, including our Annual Report on Form
20-F for the fiscal year ended December 31,
2018. XRF's SEC filings are available publicly on the SEC's
website at www.sec.gov. XRF disclaims any obligation to update the
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE China Rapid Finance