SOS Ltd. Enters into Non-Binding Letter of Intent to Acquire a Cryptocurrency Technology Provider based in Canada

Rhea-AI Summary

SOS Limited (NYSE: SOS) announced a non-binding letter of intent to acquire FXK Tech Corporation, a Canadian blockchain technology provider. This acquisition aims to enhance SOS's cryptocurrency ecosystem and expand its operations into North America. The deal involves acquiring 100% of FXK for cash and Class A shares. Completion is subject to due diligence, board approval, and NYSE listing. The acquisition aligns with SOS's strategy to grow in cryptocurrency mining and security.

Positive

• Acquisition of FXK expected to enhance SOS's cryptocurrency ecosystem.
• Expansion of operations into North America.
• Potential for increased market share in blockchain technology.

Negative

• Acquisition is non-binding and subject to due diligence, which introduces uncertainty.
• No assurance that a definitive agreement will be reached.

QINGDAO, China, Jan. 19, 2021 /PRNewswire/ -- SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today it has entered into a non-binding letter of intent to acquire FXK Tech Corporation("FXK"), a Canadian-based company, specializing in the blockchain technology consulting and operations and support for cryptocurrency exchanges and cloud crypto algorithmic power exchanges, to further extend SOS ecosystem of blockchain and cryptocurrencies, as well as to expand its operations to North America. 

FXK is a licensed crypto technology provider in Canada. Its current services and products include the design, construction, operations and support of exchange platforms of cryptocurrencies and cloud crypto algorithmic power, and blockchain-based solutions.  

SOS is an emerging blockchain-based and big data-driven marketing and service provider, with a nationwide membership base of approximately 20 million in China. Recently, SOS has outlined its strategy in blockchain and cryptocurrencies, which include a series of initiatives to expand its business into cryptocurrency mining as well as cryptocurrency security and insurance. The core infrastructure of SOS rescue, insurance marketing and service supply chain is built on big data, blockchain-based technology, cloud computing, AI, satellite, and 5G network, etc. 

Pursuant to the Letter of Intent, SOS is expected to acquire 100% of the outstanding shares of FXK for a combination of Class A ordinary shares and cash. The Company's planned acquisition of FXK is aimed to further expand and upgrade its ecosystem of cryptocurrencies and digital assets as well as to expand its business to North America. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.

Dr Huazhong Yan, Vice President of SOS Information Technology Co. Ltd, the Company's operating subsidiary, commented, "with its leading-edge technologies in cryptocurrency exchanges, and crypto algorithmic power exchanges, acquisition of FXK will further expand our ecosystem of cryptocurrencies and cloud crypto mining and security and insurance."     

SOS Chairman Yandai Wang also commented, "FXK is a leader in cryptocurrency and crypto algorithmic power exchange technologies. If the acquisition is completed, our operations will be expanded to North America as well as expedite the executions of our strategy in cryptocurrencies and cloud crypto mining and security and insurance."

Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive share exchange agreement, satisfaction of the conditions negotiated therein including the approval of the Company's Board of Directors, approval by NYSE of the listing of shares issued in the transaction, and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding.

About FXK Tech Corporation

FXK Tech Corporation ("FXK") is a Canadian-based company, headquartered in Richmond, B.C, specialized in the blockchain technology consulting, and operations and support for crypto currency and cloud crypto algorithmic power exchanges. FXK is a licensed leading-edge crypto technology provider fully complied with provisional and federal regulations and law. The core R&D team consists of a group of leading researchers in blockchain and cryptocurrencies. Its current services and products include: the design, construction, operations and support for exchange platforms of cryptocurrencies and loud crypto algorithmic power, and blockchain-based solutions. For more information, please visit: https://www.fxk.com/  

About SOS Limited

SOS Limited, through its operating subsidiary, SOS Information Technology Co., Ltd. ("SOS") is a high-technology company providing a wide range of services to its corporate and individual members, including marketing data, technology and solutions for emergency rescue services. SOS transforms digital technology into data-driven operations through the research and development of big data, cloud computing, Internet of Things, blockchain and artificial intelligence.

We have created a SOS cloud emergency rescue service software as a service (SaaS) platform with three major product categories: basic cloud, cooperative cloud, and information. This system provides innovative marketing solutions to clients such as insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers, and other service providers in the emergency rescue services industry.

SOS has obtained a national high-tech enterprise certification and the title of "big data star enterprise," awarded by Gui'an New District Government. Staying on the forefront of digital technology innovation, the Company has registered 32 software copyrights and 2 patents. For more information, please visit: http://www.sosyun.com/ 

Forward-Looking Statements

Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties;, SOS's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities market acceptance of our products; the ultimate impact of the current Coronavirus pandemic, or any other health epidemic, on our business, our research programs, healthcare systems or the global economy as a whole; our intellectual property; our reliance on third party organizations; our anticipated financial and operating results, including anticipated sources of revenues; our assumptions regarding the size of the available market, benefits of our product offering, product pricing, timing of product launches; management's expectation with respect to future acquisitions; statements regarding our goals, intentions, plans and expectations, including the introduction of new products and markets; and our cash needs and financing plans and etc. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. SOS may not realize its expectations, and its beliefs may not prove correct. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Additional information concerning these and other factors that may impact our expectations and projections can be found in our periodic filings with the SEC, including our Annual Report on Form 20-F for the fiscal year endedDecember 31, 2019. SOS's SEC filings are available publicly on the SEC's website at www.sec.gov. SOS disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE SOS Limited

FAQ

What does SOS Limited's acquisition of FXK Tech Corporation entail?

SOS Limited plans to acquire FXK Tech Corporation to enhance its blockchain ecosystem and expand into North America.

When was the letter of intent for the FXK acquisition signed?

The letter of intent was signed on January 19, 2021.

What is the expected transaction value for the FXK acquisition?

The transaction value involves a combination of cash and Class A ordinary shares, but specific amounts were not disclosed.

What are the strategic benefits of the acquisition for SOS?

The acquisition is expected to provide synergies in cryptocurrency technology and expand SOS's market reach.

Is the acquisition of FXK finalized?

No, the acquisition is subject to due diligence and other customary closing conditions.