Sino-Global Announces Letter of Intent to Acquire Shenzhen Jiayoubao Mobile Internet Co., Ltd

Rhea-AI Summary

Sino-Global Shipping America, Ltd. (NASDAQ: SINO) announced a non-binding letter of intent to acquire 51% of Shenzhen Jiayoubao Mobile Internet Co., Ltd. for approximately $1.1 million in common stock. Jiayoubao, founded in 2014, provides innovative mobile services, including mobile refueling and QR code payments, with over 70 million users. This acquisition aims to enhance Sino-Global's transport capacity and technological integration in the logistics supply chain, particularly post-COVID-19.

Positive

• Acquisition of Jiayoubao enhances technological capabilities.
• Strategic expansion into mobile services with potential market growth.
• Access to Jiayoubao's customer base of over 70 million users.

Negative

• None.

ROSLYN, N.Y., Dec. 8, 2020 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "we"), a non-asset based global shipping and freight logistical integrated solutions provider, today announced that the Company has entered into a non-binding letter of intent (the "LOI") to acquire 51% of Shenzhen Jiayoubao Mobile Internet Co., Ltd. ("Jiayoubao").

Pursuant to the terms of the LOI, Sino-Global has agreed to pay approximately $1.1 million of shares of its common stock, based on the average closing bid price for the consecutive thirty trading days prior to the execution date of the definitive purchase agreement. 

Founded in 2014, Jiayoubao is an innovative mobile Internet company. Through its "Didi Jiayou" technology platform, Jiayoubao engages in mobile refueling, location based service map navigation, QR code mobile payments, online financial management, mobile app development, and IT operations. Didi Jiayou has been well integrated into the industry's sales strategies and customer-facing experiences, and its platform serves over 70 million users. Through this acquisition, SINO will be more effectively integrated into the current transport capacity resources of the transportation logistics supply chain (such as truck companies) while furthering its own technological content.

Mr. Lei Cao, Chief Executive Officer of Sino-Global, commented, "The acquisition of Jiayoubao supports our strategic growth plans by using Jiayoubao's high-technology platform to expand and enhance the transport capacity of Sino-Global's shipping logistics business. Supply chains in the logistics and transportation industry have been hampered as a consequence of the Covid-19 outbreak. By joining forces with Jiayoubao, we expect to strengthen our combined abilities to expand our industry and unlock market opportunities. Bringing in Jiayoubao's technology platform marks our commitment to advancing our capabilities to penetrate the market."

About Sino-Global Shipping America, Ltd.

Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged in shipping, chartering, logistics and related services. Headquartered in New York, Sino-Global has offices in Los Angeles, Mainland China, Australia, Canada and Hong Kong. The Company's current service offerings consist of shipping agency services, shipping and chartering services, inland transportation management services and ship management services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. The Company routinely posts important information on its website.

Forward-Looking Statements

No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in Sino-Global's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. Sino-Global undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For more information, please contact:

Michael Huang
Chief Operating Officer
1-718-473-2858
michael@sino-global.com

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SOURCE Sino-Global Shipping America, Ltd.

FAQ

What is Sino-Global's recent acquisition?

Sino-Global has entered a letter of intent to acquire 51% of Shenzhen Jiayoubao for approximately $1.1 million.

How will the acquisition of Jiayoubao impact Sino-Global?

The acquisition aims to enhance Sino-Global's logistics capabilities, integrating Jiayoubao's technology into its operations.

What services does Jiayoubao offer?

Jiayoubao provides mobile refueling, navigation services, QR code payments, and app development.

When was the letter of intent signed for the acquisition?

The letter of intent was announced on December 8, 2020.

What is the significance of acquiring Jiayoubao for Sino-Global?

It strengthens Sino-Global's position in the logistics industry and allows for better integration with transport capacity resources.