ATIF Holdings Limited Signs Letter of Intent to Acquire Illuminated Air Purification Solution Provider to Expand into Healthcare Technology Field

Rhea-AI Summary

ATIF Holdings Limited announced its intention to acquire a 51% equity interest in Xi’an Green Fun Technology Co., Ltd. on October 11, 2020. This acquisition aims to enhance ATIF's portfolio in the growing niche of illuminated air purification technology, particularly after the heightened demand due to the COVID-19 pandemic. The acquisition is contingent upon a definitive agreement and necessary approvals. Green Fun is recognized for its innovative air purifiers and has secured numerous patents, making it a key player in the air purification sector in China.

Positive

• The acquisition of 51% in Green Fun positions ATIF for growth in the air purification market.
• Green Fun's patented products are well-received, enhancing potential revenue streams.
• The rising demand for air purification solutions since the COVID-19 pandemic benefits the acquisition.

Negative

• The transaction is non-binding and subject to further negotiation and approvals.
• Integrating Green Fun's operations may present challenges for ATIF.

Shenzhen, China, Oct. 20, 2020 (GLOBE NEWSWIRE) -- ATIF Holdings Limited (Nasdaq: ATIF, the “Company”), a company providing business consulting and multimedia services in Asia, announced that on October 11, 2020, the Company has entered into a non-binding letter of intent (the “LOI”) to acquire 51% equity interest in Xi’an Green Fun Technology Co., Ltd. (“Green Fun”), a high technology company focused on research, development and manufacturing of illuminated air purifier products.

Pursuant to the LOI, the Company will acquire no less than 51% equity interest in Green Fun (the “Proposed Transaction”). The Proposed Transaction is subject to a definitive acquisition agreement to be negotiated between the two parties, following further financial and legal reviews and approval of the Company’s Board of Directors, as well as other customary closing conditions.

Mr. Pishan Chi, the CEO of ATIF commented, “We are impressed by the research, development and operation capabilities of the Green Fun and optimistic about the niche market of illuminated air purification. We believe the acquisition of 51% of Green Fun will provide solid contribution to our earnings and pave the way for us for further growth. The market of air purification and sterilization products became especially hot since the epidemic of COVID-19, which has driven the growth of Green Fun’s overall business. We are currently evaluating market opportunities in this new business and seeking more acquisition opportunities to achieve sustainable growth of our business.”

About Xi’an Green Fun Technology Co., Ltd.
Headquartered in Xi’an City of China and with branches in Qingdao, Qinghai, Xinjiang and Tongchuan, Green Fun is a leading company in the quantum light air purifier industry specified in providing quantum photocatalytic lighting air purifiers and professional indoor air purification solutions. Its purifier product "Explorer" obtained more than ten patents and has been proven by the Guangdong Microbiological Analysis and Testing Center for its effective elimination of toxic/ harmful gases, particles, substances and bacteria. Green Fun has been certified as National High-Tech Enterprise. Green Fun’s quantum photocatalytic lighting air purifiers and professional indoor air purification solutions have been procured by many government agencies, enterprises and individual customers from multiple provinces and cities in China, including Xi'an, Shanghai, Jiangxi, Guangxi, Shandong, Gansu, Xinjiang, Qinghai, and Jiangsu. The products and solutions are extensively adopted in various places such as schools, hospitals, public health places, government offices, corporate offices, factory areas and individual households.

About ATIF Holdings Limited
Headquartered in Shenzhen, China, ATIF Holdings Limited (“ATIF”) is a company providing business consulting services to small and medium-sized enterprises in Asia, including going public consulting services, international business planning and consulting services, and financial media services. ATIF operates an internet-based financial consulting service platform IPOEX.com, which provides prestige membership services including online capital market information, pre-IPO education and matchmaking services between SMEs and financing institutions. ATIF has advised several enterprises in China in their plans to become publicly listed in the U.S. Through its majority-owned subsidiary, Leaping Group Co., Ltd., ATIF also provides multimedia services and is engaged in three major businesses, including multi-channel advertising, event planning and execution, film and TV program production and movie theater operations. ATIF operates the largest pre-movie advertising network in Heilongjiang Province and Liaoning Province of China and also provides advertising services in elevators and supermarkets. ATIF is often hired to plan both online and offline advertising campaigns and to produce related advertising material. In addition, ATIF invests in films and TV programs and distributes them in movie theaters or through online platforms. ATIF is also one of majority shareholders of AeroCentury Corp. (NYSE American: ACY) which is an independent global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft and related engines to airlines and commercial users worldwide. For more information, please visit https://ir.atifchina.com/.

Forward-Looking Statements
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantee of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; ability to manage growth and expansion; current and future economic and political conditions; ability to compete in an industry with low barriers to entry; ability to continue to operate through our VIE structure; ability to obtain additional financing in the future to fund capital expenditures; ability to attract new clients and further enhance brand recognition; ability to hire and retain qualified management personnel and key employees; trends and competition in the financial consulting services industry; a pandemic or epidemic; and other factors listed in the Company’s annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made. These forward-looking statements are made as of the date of this news release.

FAQ

What is the acquisition ATIF announced on October 11, 2020?

ATIF announced a non-binding letter of intent to acquire a 51% equity interest in Xi'an Green Fun Technology Co., Ltd.

Why is ATIF acquiring Green Fun?

The acquisition aims to tap into the growing market for illuminated air purification technology.

What does Green Fun specialize in?

Green Fun focuses on research, development, and manufacturing of illuminated air purifiers.

What is the expected impact of the acquisition on ATIF?

The acquisition is expected to contribute to ATIF's earnings and facilitate growth in the air purification sector.

What are the risks associated with ATIF's acquisition of Green Fun?

The acquisition is non-binding and may face challenges during integration and final negotiations.