Future Fintech and Spondula Terminated the Negotiation of Potential Acquisition

Rhea-AI Summary

Future FinTech Group Inc. (NASDAQ: FTFT) announced the termination of negotiations for the potential acquisition of Spondula initially revealed on September 22, 2020. The parties could not reach an agreement on final business terms, leading to the mutual decision to end discussions as per the non-binding letter of intent dated September 19, 2020. The company's focus remains on developing global challenger banking and payment systems through acquisitions.

Positive

• None.

Negative

• Termination of acquisition negotiations with Spondula potentially limits growth opportunities.
• Failure to agree on terms may raise concerns about negotiation capabilities.

BEIJING, Oct. 23, 2020 /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 the parties have mutually agreed to terminate the negotiation of the potential acquisition of Spondula, previously announced by the Company on September 22, 2020. The parties have not been able to agree on the final business terms for the potential acquisition and have mutually agreed to terminate the potential transaction contemplated in the non-binding letter of intent entered by the Company, Spondula and its shareholder on September 19, 2020.

The Company strategy remains to focus on development of business of global challenger banking and payment system through acquisitions.

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.

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SOURCE Future FinTech Group Inc.

FAQ

What led to the termination of the acquisition negotiation between Future FinTech and Spondula?

Future FinTech and Spondula could not agree on the final business terms, resulting in the termination of negotiations.

When was the decision made to terminate the acquisition deal?

The decision was made on October 23, 2020.

What is the future strategy of Future FinTech after the acquisition termination?

Future FinTech will continue to focus on developing global challenger banking and payment systems through other acquisition opportunities.

What was the initial date the acquisition of Spondula was announced?

The acquisition was initially announced on September 22, 2020.