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Future Fintech Subsidiary Digipay Finteh Limited to Acquire 60% Equity Interest in Asen Maneuvre Group Limited in Indonesia for ~$5.4M

Future FinTech Group Inc. (NASDAQ: FTFT) today announced it entered into a SHARE EXCHANGE Letter of Intent ("LOI") with Asen Tech Group Limited onAug 18 , 2020.

Benzinga · 08/24/2020 09:41
Future FinTech Group Inc. (NASDAQ: FTFT) today announced it entered into a SHARE EXCHANGE Letter of Intent ("LOI") with Asen Tech Group Limited onAug 18 , 2020. Pursuant to the LOI, the Company's 100% owned subsidiary, DigiPay FinTeh Limited (BVI), plans to acquire 60% equity interest in Asen Maneuvre Group Limited (BVI) in Indonesia ("Asen") from Asen Tech Group Limited. Through this acquisition, FTFT will obtain the Indonesian OJK and KSP financial licenses and enter into the financial technology business in Indonesian. The LOI is non-binding except for the "Confidentiality and Exclusivity" and "Applicable Law and Dispute Resolution" sections. Asen owns an OJK Fintech Lending license and a Koperasi Simpan Pinjamfinancial license, which are issued by Indonesian Financial Services Authority, Indonesian Ministry of Law and SME Regulatory Authority, respectively. Asen develops consumer finance business in Indonesia, through cooperation withShopee, Tokopedia, Lazada, Bukalapakand other e-commerce companies.It provides loan services for consumers with its online service platform and currently has more than 3 million registered members of which more than 1 million are active members. According to the LOI, the acquisition price for 60% equity interest of Asen is expected to be approximately US$5.4 million. FTFT plans to issue approximately 2.16 million shares of its Common Stock to Asen Tech Group Limited for the acquisition price. The acquisition also expects to have an earn-out clause based on Asen's performance for the next two years, which will require Asen to achieve a pre-tax profit for no less than $1 million and $1.4 million in 2020 and 2021, respectively, in order to receive the full share payment. FTFT is determined to implement its transformation strategy and enter into the financial technology industry. It entered into a Share Exchange Agreement on July 13, 2020 to acquire 90% ownership of Nice Talent Asset Management in Hong Kong, which is expected to close in the next couple weeks. The Company plans to improve the customers' experience in the consumer investment and financial management industry through the use of online platform whilst also saving costs and improving the company's profitability. Shanchun Huang, CEO of FTFT stated: "Asen has a strong financial and banking background, and has a solid business foundation in the Indonesian market. I believe that the Indonesian market with a population of 260 million will provide us with growth opportunities. It will also provide us with the experience we need to enter and compete in other Southeast Asia markets." Xujun Ji, Chairman of Asen, said: "We have the same vision and mission as FTFT. We believe that the challenger banking and online service fields that FTFT plans to enter into will become a competitive advantage for our consumer finance business and provide better service to our customers."