Future Fintech and Blocknance Signed Term Sheet for Potential Acquisition

Rhea-AI Summary

Future FinTech Group (NASDAQ: FTFT) announced a term sheet with Blocknance Financial International SRL to acquire 60% of Blocknance for $960,000, valuing the company at $1.6 million. Blocknance operates cryptocurrency exchange services in the Dominican Republic, featuring Bitcoin ATMs and physical offices. This acquisition aims to enhance FTFT's blockchain services and expand its market reach, especially for tourists. The deal aligns with FTFT's goal to establish a comprehensive blockchain financial service system and increase customer engagement.

Positive

• Acquisition of 60% of Blocknance for $960,000 may enhance FTFT's blockchain service capabilities.
• Blocknance's established presence in the Dominican Republic could attract more customers and tourists.
• Potential for expanding Blocknance's ATM services into Europe and Asia, increasing revenue opportunities.

Negative

• None.

NEW YORK, Jan. 4, 2021 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) (hereinafter referred to as "Future Fintech", "FTFT" or "Company" ") a leading blockchain e-commerce company and a service provider for financial technology, today announced it has signed a term sheet ("Term Sheet") with Blocknance Financial International SRL("Blocknance"), a company incorporated in the Dominican Republic and the selling shareholders of Blocknance on December 30, 2020. Pursuant to the Term Sheet, the Company plans to acquire 60% of the total issued and outstanding shares of Blocknance. 

Blocknance provides services for transactions between Bitcoin and other cryptocurrencies and fiat currencies, such as Dominican Peso, US dollar, Euro and Russian Ruble for customers through Bitcoin ATM machines and physical offices. All ATMs and physical offices are currently located in Santo Domingo, Punta Cana, La Romana, and Santiago de los Caballeros in the Dominican Republic.

Blocknance is headquartered in the Dominican Republic. Its subsidiary Cryptocana SRL works with financial consulting companies to help clients buy, rent and sell residential, commercial, local and international real estate using cryptocurrencies; another subsidiary Blockchain Finance International Inc. is registered in Wyoming, US and officially registered as a Money Service Business (MSB) which is regulated and administered by the Financial Crimes Enforcement Network (FinCEN). According to the framework agreement, the current total valuation of Blocknance is $1.6 million. Future FinTech or its wholly-owned subsidiary plans to acquire 60% of Blocknance through cash and shares with a purchase price of US $960,000. Future FinTech reserves the right to purchase additional shares from the seller.

Emmy Jude Fortune, the General Manager of Blocknance, stated, "Blocknance is one of the most advanced, semi-decentralized cryptocurrency exchange platforms on the market today. It provides a safe way to exchange Bitcoin and cryptocurrency with fiat currencies for individuals who want to use them to buy and sell goods or services and is the largest Bitcoin transaction service provider in the Caribbean. With the help of our new ATMs, more and more people use cryptocurrency for transactions. Our Punta Cana and Santiago office provides services to more than 10,000 tourists every year, because most tourists do not have local bank accounts. Our physical offices or ATMs provide convenient two-way exchange services of Bitcoin and other cryptocurrency to fiat currencies for tourists. Blocknance plans to increase the number of Bitcoin ATMs and expand them to Europe, Asia and other regions pursuant to local regulatory requirements in 2021. FTFT has a great management team in financial services and blockchain technology. The union with FTFT can rapidly expand our operations, continuously improve customer experience and satisfaction, increase service scenarios, and meet the needs of more and diversified customers. "

Shanchun Huang, Chief Executive Officer of Future FinTech said, "Blockchain technology and its application is an important strategic segment and business component of FTFT. Building a complete blockchain financial service system is an important development plan of FTFT. We have been looking for valuable blockchain technology companies to dock with our existing resources. When Bitcoin holders could convert Bitcoin into cash at ATM as Blocknance does in Dominican Republic, cryptocurrency will be gradually accepted by more and more people. We believe that the investment in Blocknance can further expand our business, bring additional income to the Company, and we hope to eventually create a channel that can connect Bitcoin and other cryptocurrencies with the services of mainstream financial institutions under applicable laws and regulations. "

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. 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://www.ftftex.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, 2019 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.

IR Contact:
Future FinTech Group Inc.,
Tel: +1-888-622-1218
Email: ir@ftftex.com  

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SOURCE Future FinTech Group Inc.

FAQ

What is the acquisition deal between Future FinTech Group and Blocknance?

Future FinTech Group plans to acquire 60% of Blocknance for $960,000, aiming to enhance its blockchain service offerings.

How will the acquisition of Blocknance impact FTFT's operations?

The acquisition is expected to strengthen FTFT's position in the blockchain market and expand its service offerings to a broader customer base.

What is Blocknance's market presence?

Blocknance operates Bitcoin ATMs and offices in the Dominican Republic, catering primarily to tourists needing cryptocurrency exchange services.

What is the valuation of Blocknance as per the term sheet?

The total valuation of Blocknance is set at $1.6 million based on the term sheet signed with FTFT.

When was the term sheet signed for the acquisition of Blocknance?

The term sheet for the acquisition was signed on December 30, 2020.