SOS Responds to Frequently Asked Questions from its Shareholders
SOS Limited (NYSE: SOS) has issued responses to frequently asked questions from shareholders to enhance communication and investor relations. The company's primary offerings include data mining services and marketing solutions for insurance and healthcare sectors in China. Recently, SOS has ventured into cryptocurrency mining, acquiring over 15,000 used mining rigs through a confidential seller based in Shenzhen. However, the company has decided not to pursue a previously announced acquisition of FXK Tech Corporation due to various board considerations.
- Expansion into cryptocurrency mining with 15,645 rigs acquired, enhancing digital asset security services.
- Strategic relocation to Qingdao Free Trade Zone, potentially leading to operational benefits.
- Decision not to pursue the acquisition of FXK Tech Corporation, which may limit growth opportunities.
QINGDAO, China, March 9, 2021 /PRNewswire/ -- SOS Limited, a corporation organized under the laws of the Cayman Islands (NYSE: SOS) (the "Company," "we," "us" or "SOS") issued responses to frequently asked shareholder inquiries today. These responses were issued in an effort to facilitate communications with its shareholders and improve investor relations. The questions and answers appear below.
Q: What is the nature of your business?
A: We provide a wide range of data mining and analysis services to our corporate and individual members, including providing marketing data, technology and solutions for insurance companies, emergency rescue services, and insurance product and health care information portal in China. Our mission is to make it easier, safer and more efficient for our clients to obtain and process the data of their target customers.
We primarily address the large unmet demand for marketing-related data for clients such as insurance companies, financial institutions, medical institutions, healthcare providers and other service providers in the emergency rescue services industry by creating a SOS cloud emergency rescue service software as a service (SaaS) platform.
Recently, we have launched our crypto mining business, and aim to start infrastructure services in blockchain security for our big data insurance marketing as well as provide insurance and banking services for digital assets and crypto currencies.
Q: What is your address?
A: Our headquarters were previously located in Shijiazhuang, China at Building B Floor 14, Lehuo Building, No.128 Yuhua West Road, Qiaoxi District, Shijiazhuang, Hebei Province. As previously announced on July 31, 2020, we agreed to relocate our headquarters to the Qingdao Free Trade Zone. The free trade zone offers a number of government-subsidized benefits and privileges to corporate residents. To take immediate advantage of these benefits and privileges, the free trade zone allocates a temporary address to each corporate resident during the construction of the resident's permanent address. Our temporary address was 888 Changbaishan Road, Jiudingfeng Building Suite 8888, Qingdao Area, China (Shandong) Pilot Free Trade Zone, Qingdao China. This is a shared, virtual address used by all new residents. The use of temporary corporate addresses is standard practice in the free trade zone. After completing construction and installing our furnishings, we recently moved into our new headquarters building located at Building 6, East Seaview Park, 298 Haijing Road, Yinzhu Street, West Coast New District, Qingdao, China.
In addition to our headquarters, the Company has a number of different locations throughout China for branch offices and subsidiaries. In particular, our crypto currency mining rigs are located is various, confidential locations. We relocate our mining rigs from time to time in order to take advantage of lower electricity costs. The Company does not disclose the exact address of the mining rigs in order to maintain the security of the rigs and to protect them from our competitors.
Q: How did the company acquire crypto currency mining rigs, in spite of a world-wide shortage of such rigs? Who is HY International?
A: In January 2021, SOS announced that it was expanding its existing secure and insurance business into the protection of crypto currencies and digital assets, which have historically suffered from a high incidence of theft and loss. The Company also saw certain synergies and opportunities to expand its business into crypto currency mining. Through its industry connections, the Company identified an entity in Shenzhen, China that was offering a number of used mining rigs for sale. The Company felt this was a good opportunity to accelerate the Company's expansion into crypto-mining and to build capabilities that would enhance our digital security and insurance businesses.
An important consideration for the seller was to preserve the confidentiality of its identity. In order to do this, the seller established HY International Group New York Inc. ("HY International") as its U.S. affiliate. This U.S. affiliate was the contractual counterparty who sold 15,645 used mining rigs to the Company.
Q: What is the status of these mining rigs?
A: The first batch of 5,000 rigs was received on or about February 9, 2021. The second batch of 5,000 rigs was received on or about February 24, 2021. The third batch of 5,645 rigs is expected to be delivered on or about April 15, 2021, although the actual delivery date is subject to a number of factors which could accelerate or delay their delivery. The Company has already paid for all three batches, with a small holdback that will be paid upon delivery of the third batch. The first batch of mining rigs have been put into operation, and are subject to intermittent down-time for maintenance, adjustment and reconfiguration.
Q: What are the specifications and models of these mining rigs?
A: The mining rigs purchased from HY International were previously used. They are designed to mine Bitcoin and Ethereum. The mining rigs are of various specifications. Some of the rigs include components which are similar to those contained in the HY-Momentum T2T and HY-A10 Pro, although they are not necessarily these particular branded models. You can find a video of some of our mining rigs at http://www.sosyun.com/.
Q: What is the status of the Company's acquisition of FXK?
A: FXK Tech Corporation ("FXK") is a blockchain service provider organized under the laws of British Columbia, Canada. SOS and FXK entered into a non-binding letter of intent on January 18, 2021 for SOS to acquire FXK. As previously announced on January 19, 2021, the letter of intent was non-binding in nature, subject to due diligence, negotiation and execution of a definitive acquisition agreement, SOS board approval and NYSE approval. Since January 18, the Company has been conducting and has now concluded due diligence on FXK. After discussion among the Company's board of directors, SOS has determined for various reasons, not to pursue the transaction with FXK.
Q: Where can I find more information about the Company?
A: The ADRs of the Company are publicly listed on the New York Stock Exchange. As such, we are subject to the information reporting requirements of the United States Securities Exchange Act of 1934, as amended, that are applicable to foreign private issuers. In accordance with these requirements, we file annual reports on Form 20-F, reports of foreign issuers on Form 6-K and other information with the SEC. You may inspect, read (without charge) and copy the reports and other information we file with the SEC at the SEC's Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an internet website at www.sec.gov that contains our filed reports and other information that we file electronically with the SEC. We also maintain a corporate website at http://www.sosyun.com/, where you can find further information about us.
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 the Company's expected delivery of mining rigs, the anticipated hash power of our mining rigs, our intention to provide blockchain security services and insurance and banking services for digital assets and crypto currencies, and the business plans, objectives, expectations and intentions of the Company. 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.
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SOURCE SOS Limited
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