Lion Signs Strategic Cooperation Agreement

Rhea-AI Summary

Lion Group Holding Ltd. (NASDAQ: LGHL) announced a strategic cooperation agreement with blockchain leader Mr. Yao Yongjie. The collaboration includes a fund of up to US$800 million to enhance the blockchain technology ecosystem and digital currency innovation, allowing easier access to the digital currency market. Mr. Yao will serve as the chief technical adviser for blockchain initiatives. The transaction is subject to regulatory approvals, with further details available in the Company's SEC form 6-K.

Positive

• Establishment of a fund of up to US$800 million for blockchain development.
• Partnership with Mr. Yao Yongjie, enhancing credibility in the blockchain industry.
• Involvement of Mr. Yao as chief technical adviser to guide blockchain strategy.

Negative

• Transaction completion dependent on customary conditions, including regulatory approvals.
• Forward-looking statements indicate potential risks and uncertainties affecting future performance.

HONG KONG, Jan. 8, 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, today announced it entered into a binding strategic cooperation framework agreement with Mr. Yao Yongjie ("Mr. Yao"), a leader in the global blockchain industry and the chairman of the board of directors of a public listed company on the Hong Kong Stock Exchange, Grandshores Technology Group Limited (stock code: 1647). The strategic cooperation agreement has been approved by the board of directors of the Company. Closing of the transactions contemplated in the agreement will be subject to customary conditions, including regulatory approvals.

According to the agreement, the Company and Mr. Yao will each use their respective capital, platform and resources to jointly set up a fund of not more than US$800 million to jointly promote the development and the industry environment of blockchain technology, and actively promote the product innovation in the digital currency field, allowing clients to participate in the digital currency market more conveniently. The fund will invest, without limitation, in mine construction, mining and its upstream and downstream industries of digital currencies such as Bitcoin and Ethereum.

The Company engages Mr. Yao as the chief technical adviser to provide technical advice and consultancy service in blockchain industry.  Additional details of Mr. Yao's strategic cooperation agreement can be found in the Company's form 6-K filed today with the SEC.

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-signs-strategic-cooperation-agreement-301203559.html

SOURCE Lion Group Holding Ltd.

FAQ

What is the strategic cooperation agreement between Lion Group Holding and Mr. Yao Yongjie?

Lion Group Holding entered into a strategic cooperation agreement with Mr. Yao Yongjie to establish a fund of up to US$800 million for blockchain technology and digital currency innovation.

How much capital will be involved in Lion Group's new blockchain initiative?

Lion Group is setting up a fund of not more than US$800 million for blockchain development.

What is Mr. Yao Yongjie's role in Lion Group's blockchain initiative?

Mr. Yao Yongjie will serve as the chief technical adviser, providing technical advice and consultancy services in the blockchain industry.

Are there any risks associated with Lion Group's recent announcement?

Yes, the completion of the transactions is subject to regulatory approvals and involves inherent risks and uncertainties as stated in the forward-looking statements.

What is the stock symbol for Lion Group Holding?

The stock symbol for Lion Group Holding is LGHL.