Business
Future Fintech Announces Closing of Nice Talent Asset Management Acquisition and Pending Acquisitions Update
NEW YORK, Aug. 10, 2021 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as Future FinTech", "FTFT" or "the Company"), a
About this update from Future Fintech Group Inc.
[{"type":"text","content":"NEW YORK, Aug. 10, 2021 /PRNewswire/ -- 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 6, 2021, the Company closed its acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited (\"NTAM\"), a Hong Kong-based asset management company, from Joy Rich Enterprises Limited (\"Joy Rich\"). \nAs previously announced in the Company's press releases on July 16, 2020 and April 12, 2021, the Company entered into a Share Exchange Agreement (the \"Agreement\"), amended on April 9, 2021 (the \"Amendment\"), with Joy Rich to acquire 90% of the issued and outstanding shares of NTAM. \nNTAM is licensed under the Securities and Futures Commission of Hong Kong (\"SFC\") to carry out regulated activities in 'Type 4: Advising on Securities and 'Type 9: Asset Management'. The Company has received approval from the SFC to become a substantial shareholder of NTAM. NTAM's current business partners include major international banks and its clients are high net worth customers. Hong Kong is widely recognized as a leading asset management center in Asia with a large concentration of international fund managers.\nBased upon a valuation report prepared for the Company by Greater China Appraisal Limited, a 100% equity interest of NTAM was valued at HK$189,338,353 in February 2021. Pursuant to the terms of the amended Agreement, the total purchase price for a 90% equity interest in NTAM (the \"Purchase Price\") is HK$144,000,000 (approximately US$18,701,299), of which 60% of the Purchase Price, or HK$86,400,000 (approximately US$11,220,779) shall be paid in shares of common stock of the Company based on 95% of the closing price of the shares of Company's common stock on the Nasdaq Stock Market prior to the date of the Amendment which is calculated to be $5.00 per share (the \"FTFT Share Price\"). The remaining 40% of the Purchase Price shall be paid in FTFT common stock (the \"Earn-Out Shares\") according to the achievement of EBIT goals by NTAM for 2021 and 2022, as follows:\ni. If NTAM achieves EBIT of HK$14,000,000 in 2021, the Company shall pay 20% of the Purchase Price, which is HK$28,800,000, in shares of common stock of the Company based o...