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Future Fintech Announces Framework Agreement to Acquire Cryptocurrency Mining Farm
NEW YORK, April 14, 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, April 14, 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 the Company has signed an equity acquisition framework agreement (the \"Framework Agreement\") to acquire a 51% equity interest in Mingtang Network Technology Co., Ltd. (the \"Mingtang Network\") from its shareholders (the \"Sellers\"). Mingtang Network is located in the Changji Zhundong Economic and Development Zone in the Xinjiang Autonomous Region of China. The Framework Agreement is non-binding except for the 'Confidentiality and Exclusivity' and 'Applicable Law and Dispute Resolution' sections of the agreement.\nMingtang Network operates a cryptocurrency mining farm that integrates big data collection, cloud storage and advanced computer software and hardware operations into an industrial system of data analysis and information storage. Phase I of Mingtang Network's data center has a 50,000 capacity load for cryptocurrency mining machines, the ability to run big data mining applications and is fully operational. It also has 300,000 sets of mechanical and electrical equipment on site such as standby or outsourcing cryptocurrency mainframes, mining machine power supply modules, etc., which are either owned by Mingtang Network or its clients using the mining farm. Mingtang Network's cryptocurrency mining farm has been granted all necessary governmental approvals in China.\nAccording to the Frame Agreement, the Company will acquire 51% of the equity of Mingtang Network at a purchase price of RMB 45.9 million (approximately US$ 7.0 million) based on a valuation of 100% of the equity of Mingtang Network of RMB 90 million (approximately US$ 13.8 million). However, the final purchase price will be determined by both parties and will be based on completion of a financial audit of Mingtang Network and pending the Company's due diligence and a definitive agreement by the parties. The Sellers promise that 2021 audited earnings before interest and taxes (\"EBIT\") of Mingtang Network will be at least RMB 40 million (approximately US$ 6.1 million), and if this does not occur, the Sellers agree to bear any shortfall attributable to this figure and make the Company whole as to the p...