Business
Future Fintech Entered Into Amendment Agreement to Acquire Nice Talent Asset Management
NEW YORK, April 12, 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 12, 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 further to its February 26, 2021 press release, it has entered into an amendment (the \"Amendment\") to its Share Exchange Agreement (the \"Agreement\") with Joy Rich Enterprises Limited (\"Joy Rich\") to acquire 90% of the issued and outstanding shares of Nice Talent Asset Management Limited (\"NTAM\"), a Hong Kong-based asset management company, from Joy Rich. NTAM 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'. NTAM's current business partners include major international banks and its clients cover the spectrum from well-established institutional funds to high net worth retail customers. \nBased upon a valuation report 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 Amendment, 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 Earnings Before Interest and Taxes (\"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 on the FTFT Share Price;\nii. If NTAM achieves an EBIT of HK$20,000,000 in 2022, the Company shall pay the final 20% of the Purchase Price, which is HK$28,800,000, in shares of common stock of the Company based on the FTFT Share Price; and,\niii. If NTAM does not achieve its EBIT goals for a given year, a fee equal to t...