Lion Announces Completion of Acquisition of Lion FinTech Group

Rhea-AI Summary

Lion Group Holding Ltd. (NASDAQ: LGHL) announced the completion of a share purchase agreement to acquire Lion Fintech Group Limited, a strategic move aimed at expanding its crypto trading services. The acquisition, effective immediately, allows Lion to access 70% voting rights in Royal Lion Investment Limited, enabling its clients to exchange fiat currencies for cryptocurrencies on a secure platform. CEO Chunning Wang emphasized the importance of this acquisition for enhancing service offerings and delivering value to shareholders.

Positive

• Acquisition expands Lion's trading services into the crypto asset market.
• Enables clients to exchange fiat currencies for cryptocurrencies.
• Strengthens Lion's market position with new trading capabilities.

Negative

• Potential risks of integration challenges post-acquisition.
• Market competition could affect the anticipated benefits of the acquisition.
• Regulatory changes may impact operations in the crypto trading space.

HONG KONG, April 13, 2021 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors, entered into a share purchase agreement (the "Share Purchase Agreement") with Mr. Jian Wang (the "Seller"), a majority shareholder and director of the Company, in a single transaction, to acquire the whole of the issued share capital of Lion Fintech Group Limited. At closing, Lion Fintech Group Limited will become a wholly-owned subsidiary of the Company.

Lion Fintech Group Limited holds 70% voting rights and economic interest in Royal Lion Investment Limited, a company incorporated in the Cayman Islands, which holds 100% interest in Royal Lion Middle East DMCC, which is licensed to carry out proprietary trading in crypto-commodities through the Dubai Multi Commodities Centre ("DMCC"). Royal Lion Middle East DMCC is the license holder with DMCC that supports FIAT currency. This transaction will allow Lion's clients to exchange FIAT currencies with crypto currencies on an efficient and secure platform.

Mr. Chunning (Wilson) Wang, Chief Executive Officer of Lion, commented, "We are pleased to complete this acquisition and expand our trading business into the crypto asset market. As the financial services industry continues to evolve, Lion remains committed to expanding its service offerings to support our clients' trading needs as we continue to create meaningful value for our shareholders." 

About Lion

Lion Group Holding Ltd. (NASDAQ: LGHL) operates an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors. Through its state-of-the-art technology, Lion offers contract-for-difference (CFD) trading, insurance brokerage, futures brokerage, and securities brokerage on its platform, which can be accessed through applications available on the iOS, Android, Windows, and macOS systems. Lion's customers are well-educated and affluent Chinese individual investors residing both inside and outside the PRC as well as institutional clients in Hong Kong. Additional information may be found at http://ir.liongrouphl.com. 

Forward-Looking Statements

This press release contains, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Lion's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Lion's expectations with respect to future performance and anticipated financial impacts of the Business combination, the satisfaction of the closing conditions to the business combination and the timing of the completion of the business combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of Lion and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to maintain the listing of the post-acquisition company's ADSs on NASDAQ following the business combination; (2) the risk that the business combination disrupts current plans and operations as a result of the announcement and consummation of the transactions described herein; (3) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably and retain its key employees; (4) costs related to the business combination; (5) changes in applicable laws or regulations; (6) the possibility that Lion may be adversely affected by other economic, business, and/or competitive factors; and (7) other risks and uncertainties to be identified in the proxy statement/prospectus relating to the business combination, including those under "Risk Factors" therein, and in other filings with the Securities and Exchange Commission ("SEC") made by Lion. Lion cautions that the foregoing list of factors is not exclusive. Lion cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Lion does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law.

Contacts

Lion Group Holding
Tel: +852 2820 9011
Email: ir@liongrouphl.com

ICR, LLC
William Zima
Tel: +1 203 682 8233
Email: ir@liongrouphl.com

View original content:http://www.prnewswire.com/news-releases/lion-announces-completion-of-acquisition-of-lion-fintech-group-301267330.html

SOURCE Lion Group Holding Ltd.

FAQ

What is the purpose of Lion's acquisition of Lion Fintech Group?

The acquisition aims to expand Lion's trading services into the crypto asset market, enhancing client offerings.

What percentage of voting rights does Lion Fintech hold?

Lion Fintech Group Limited holds 70% voting rights and economic interest in Royal Lion Investment Limited.

How will the acquisition impact Lion Group's stock (LGHL)?

The acquisition is expected to strengthen Lion's market position and create additional revenue streams, potentially impacting LGHL positively.

When was the acquisition of Lion Fintech completed?

The acquisition was announced on April 13, 2021, and became effective immediately.

What risks are associated with the acquisition of Lion Fintech?

Risks include integration challenges, competition, and potential regulatory impacts on crypto trading.