Future FinTech Signs Term Sheet to Acquire Supply Chain Software Business
Future FinTech Group Inc. (NASDAQ: FTFT) (“hereinafter referred to as “Future FinTech”, “FTFT” or “the Company”), a leading blockchain-based e-commerce business and a fintech service provider, announced today that on August 30, 2021, the Company signed an equity acquisition term sheet (the “Term Sheet”) to acquire 51% of the equity of Shanghai Dianfa Internet Technology Co., Ltd. (“Dianfa Technology”). The Term Sheet represents terms for a proposed transaction subject to definitive documentation and is non-binding except for its ‘Exclusive Period’ and ‘Confidentiality’; and ‘Governing Law’ sections.
According to the Term Sheet, the Company plans to acquire 51% of the equity of Dianfa Technology at a purchase price of RMB 17,850,000 (approximately US$ 2,762,730) of which RMB 6,000,000 (approximately US$ 928,650) will be paid in cash as a capital investment in Dianfa Technology and RMB 11,850,000 (approximately US$ 1,834,080) will be paid in shares of FTFT common stock to the selling shareholders of Dianfa Technology. The acquisition will be subject to legal and financial due diligence on the part of the Company.
Through this acquisition, FTFT plans to enter the key supply chain finance business of small and medium sized enterprises (“SMEs”) and the microfinance sector since these entities are often not able to access bank loans as larger businesses can in China. As this represents a vast number of enterprises that have ongoing capital needs, the Company plans upon developing a financial ecosystem to include financial and lending institutions, merchants, retail businesses and other supply side services, embedded with financial technology and communications, to create a highly evolved and efficient platform to optimize capital flows for SMEs and microfinance companies.
Dianfa Technology provides digital management services and high-frequency small loan assistance services to micro, small and medium-sized businesses and their suppliers based on its innovative smart retail SaaS supply chain system. Dianfa Technology uses financial technology capabilities such as mobile Internet, big data, artificial intelligence, cloud computing and blockchain analytics to help financial institutions provide low interest collateral-free revolving credit products and services to micro and small merchants across the entire retail industry business chain to meet their funding needs. These capital needs are often of a ‘short, small, frequent and urgent’ variety and are essential in terms of supporting the operating needs of microbusinesses and small merchants.
Shanchun Huang, CEO of Future FinTech, commented, “We estimate that there are millions of microbusinesses in China which represents a tremendous opportunity for digital management, lending and payment processing companies such as Dianfa Technology. Further, we anticipate that this potential acquisition will enhance our competitive advantages as well as create important synergies with our existing capabilities in supply chain finance.”
“In addition, we believe that FTFT’s strong blockchain development capabilities and rich application experience will enable us to evolve Dianfa Technology’s current smart retail SaaS supply chain system to a next business model architecture. With our increasing geographical reach, we foresee the potential to realize decentralized high-frequency small transactions for small and medium sized businesses across the globe,” continued CEO Huang.
“Our goal is to become a leading financial technology company and provide an array of individual and business customers with digital inclusive financial services and in doing so, to maximize returns to our shareholders,” concluded CEO Huang.
About Future FinTech Group Inc.
Future FinTech Group Inc. (“Future FinTech”, “FTFT” or the “Company”) is a leading blockchain e-commerce company and a service provider for financial technology incorporated in Florida. The Company’s operations include a blockchain-based online shopping mall platform, Chain Cloud Mall (“CCM”), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain based application projects and financial services for the supply chain industry. The Company is also engaged in the development of blockchain based e-Commerce technology as well as financial technology. For more information, please visit http://ftft.com/.
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