Future FinTech Signs Term Sheet to Purchase a Money Payment Service Company

Rhea-AI Summary

Future FinTech Group (NASDAQ: FTFT) announced a preliminary term sheet on April 13, 2021, to acquire 100% of Khyber Money Exchange Ltd. for €685,000 (approx. US$820,170). Khyber Exchange specializes in global money transfers, operating in over 130 countries with a focus on safe and reliable transactions. The acquisition aims to strengthen FTFT's presence in the fintech sector and enhance business synergies with their planned acquisition of Hi-Card Business Service Co., Ltd. The deal is subject to due diligence within a 30-day exclusive negotiation period.

Positive

• Planned acquisition of Khyber Exchange to enhance FTFT's footprint in the fintech sector.
• Khyber Exchange operates in over 130 countries, providing strong international reach.
• Acquisition price of approximately US$820,170 is relatively low for expanding into the fintech market.
• Potential synergies with Hi-Card Business Service Co., Ltd. could enhance operational capabilities.

Negative

• None.

NEW YORK, April 21, 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 April 13, 2021, the Company signed a preliminary term sheet (the "Term Sheet") to acquire 100% of the equity of Khyber Money Exchange Ltd. ("Khyber Exchange") from its shareholder (the "Seller"). 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.

Khyber Exchange is a money transfer company with a platform for transferring money worldwide through one of its agent locations or via its online portal, mobile platform or over the phone. Khyber Exchange is headquartered in the UK and has offices in Germany and Italy.

According to the Term Sheet, the Company will acquire 100% of the equity of Khyber Exchange at a purchase price of €685,000 (approximately US$ 820,170). The acquisition will be subject to due diligence by the Company and the Term Sheet stipulates that the Company has a 30-day period in which it has an exclusive right to negotiate for and purchase the equity of Khyber Exchange.

Shanchun Huang, Chief Executive of Future FinTech, commented, "We are pleased about this potential acquisition as it further extends our footprint into the fintech sector. We believe that this is a high margin business that will enable us to capitalize upon an increasing level of international money flows and that it could ultimately be synergistic with the Chinese payment settlement services company, Hi-Card Business Service Co., Ltd., in which we are planning to acquire a 60% interest pending due diligence and final negotiation between the parties as disclosed in our press release on March 23, 2021. Our objective is to become diversified fintech enterprise that leverages current opportunities and integrate them into a comprehensive business platform, and to create a company that can meet current financial needs as well as anticipate and develop fintech solutions for the future."

Rahim Sham, Chief Executive Officer of Khyber Exchange stated: "As a worldwide money transfer company, Khyber Exchange can transfer money over 130 countries through its agents or its online portal, mobile platform or over the phone. Money transfers can be picked up in its offices or via the beneficiary's bank account which is credited with the transmitted funds within 24 to 48 hours. Khyber Exchange guarantees its customers that its transactions are executed at the best possible exchange rate, are safe and reliable and are instantly processed. The potential acquisition by FTFT will help Khyber Exchange expand its business and operation in Asia, especially in the fast-growing Chinese market."

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/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2020 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

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SOURCE Future FinTech Group Inc.

FAQ

What is the acquisition price for Khyber Money Exchange by Future FinTech Group (FTFT)?

The acquisition price for Khyber Money Exchange is €685,000, approximately US$820,170.

When did Future FinTech Group sign the term sheet for Khyber Money Exchange acquisition?

Future FinTech Group signed the term sheet on April 13, 2021.

In how many countries does Khyber Exchange operate?

Khyber Exchange operates in over 130 countries worldwide.

What is the main business of Khyber Money Exchange?

Khyber Money Exchange specializes in worldwide money transfers through various platforms including online, mobile, and agent locations.

What is the significance of FTFT's acquisition of Khyber Exchange?

The acquisition aims to strengthen FTFT's position in the fintech sector and leverage synergies with planned acquisitions.

What is the potential impact of the Khyber Exchange acquisition on FTFT's business?

The acquisition may enhance FTFT's international money transfer capabilities and overall fintech business operations.