Future FinTech signs condition sheet to acquire supply chain software company
By Edlyn Cardoza
Future FinTech Group Inc. a blockchain-based e-commerce company and a FinTech service provider, recently announced that the Company has signed an equity acquisition agreement to acquire 51% stake in Shanghai Dianfa Internet Technology Co., Ltd. (“Dianfa Technology”). The Term Sheet represents the conditions of a proposed transaction subject to definitive documentation and is not binding, with the exception of its âExclusivity Periodâ and its âConfidentialityâ; and the âApplicable Lawâ sections.
According to the Term Sheet, the Company plans to acquire 51% stake in Dianfa Technology at a purchase price of 17,850,000 RMB (approximately 2,762,730 USD) of which 6,000,000 RMB (approximately 928,650 USD) will be paid in cash as capital the investment in Dianfa Technology and 11,850,000 RMB (approximately 1,834,080 USD) will be paid in common shares of FTFT to the selling shareholders of Dianfa Technology. The acquisition will be subject to legal and financial due diligence on the part of the Company.
Through this acquisition, FTFT plans to enter the key sector of small and medium-sized enterprises (SMEs) supply chain finance and microfinance sector, as these entities are often not able to access bank loans as big business in China can. As this represents a large number of businesses that have ongoing capital needs, the Company plans to develop a financial ecosystem to include financial and credit institutions, merchants, retail businesses and other services on the side of the l ‘offer, integrated with financial technology and communications, to create a highly evolved and efficient platform market to optimize capital flows for SMEs and microfinance companies.
Dianfa Technology provides digital management services and high frequency small loan support services to micro, small and medium enterprises and their suppliers based on its innovative smart retail SaaS supply chain system. Dianfa Technology uses financial technology capabilities such as mobile internet, big data, artificial intelligence, cloud computing and blockchain analytics to help financial institutions deliver unsecured revolving credit products and services low interest to micro and small traders across the business chain of the retail sector. meet their financing needs. These capital needs are often of a âshort, small, frequent and urgentâ nature and are essential to support the operational needs of microenterprises and small traders.
Shanchun Huang, CEO of Future FinTech, commented, âWe believe that there are millions of microenterprises in China, which represents a tremendous opportunity for digital management, loan and payment processing companies such as Dianfa Technology. In addition, we anticipate that this potential acquisition will strengthen our competitive advantages and create significant synergies with our existing supply chain finance capabilities. “
âIn addition, we believe that FTFT’s strong blockchain development capabilities and rich application experience will allow us to evolve Dianfa Technology’s current retail SaaS supply chain system to a next model architecture. commercial. With our growing geographic reach, we foresee the potential to achieve small, decentralized, high-frequency transactions for small and medium-sized businesses around the world, âcontinued CEO Huang.
âOur goal is to become a leading financial technology company and provide a range of retail and professional clients with inclusive digital financial services and in so doing, maximize returns for our shareholders,â concluded CEO Huang.
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