Future FinTech signs term sheet to acquire supply chain software company

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NEW YORK, September 3, 2021 /PRNewswire/ — Future FinTech Group Inc. (NASDAQ: FTFT) (“hereinafter referred to as “Future FinTech”, “FTFT” or “the Company”), a leading blockchain-based e-commerce company and provider of fintech services, today announced that the August 30, 2021, the Company has signed a stock acquisition term sheet (the “Term Sheet”) to acquire 51% of the shares of Shanghai Dianfa Internet Technology Co., Ltd. (“Dianfa Technology”). The term sheet represents the terms of a proposed transaction subject to final documentation and is non-binding, except for its “exclusivity period” and “confidentiality”; and the “Applicable Law” sections.

According to the Term Sheet, the Company plans to acquire 51% of the capital of Dianfa Technology at a purchase price of RMB17,850,000 (approximately $2,762,730) of which 6,000,000RMB (approximately $928,650) will be paid in cash as a capital investment in Dianfa Technology and 11,850,000 RMB (approximately $1,834,080) will be paid in ordinary shares of FTFT to the selling shareholders of Dianfa Technology. The acquisition will be subject to legal and financial due diligence by the Company.

Through this acquisition, FTFT plans to enter the key sector of supply chain finance for small and medium-sized enterprises (“SMEs”) and the microfinance sector, as these entities are often unable to access bank loans, unlike large companies. China. As this represents a large number of companies that have In progress capital requirements, the Company plans to develop a financial ecosystem comprising financial and credit institutions, merchants, retail businesses and other supply-side services, integrated with financial technology and communications, create a highly evolved and efficient platform 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 revolving credit products and services without low interest rate guarantee to micro and small traders across the retail sector business chain. meet their financing needs. These capital requirements are often of the “short, small, frequent and urgent” type and are essential to support the operating needs of microenterprises and small traders.

Shanchun HuangCEO of Future FinTech, said: “We estimate that there are millions of micro-enterprises in China which represents a tremendous opportunity for digital management, lending and payment processing companies such as Dianfa Technology. Additionally, we expect this potential acquisition to strengthen our competitive advantages and create significant synergies with our existing supply chain finance capabilities. »

“Furthermore, we believe that FTFT’s strong blockchain development capabilities and rich application experience will enable us to evolve Dianfa Technology’s current smart retail SaaS supply chain system into a new business model architecture. With our growing geographic reach, we foresee the potential to deliver decentralized small high-frequency transactions for small and medium-sized businesses around the world,” CEO Huang continued.

“Our goal is to become a leading fintech company and provide inclusive digital financial services to a range of retail and professional clients and, in doing so, maximize returns for our shareholders,” concluded CEO Huang.

About Future FinTech Group Inc.

Future FinTech Group Inc. (“Future FinTech”, “FTFT” or the “Company”) is a leading Florida-incorporated blockchain e-commerce company and fintech service provider. The Company’s businesses include a blockchain-based online shopping mall platform, Chain Cloud Mall (“CCM”), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain-based application projects and financial services for the supply chain industry. The Company is also engaged in the development of blockchain-based e-commerce technology as well as financial technology. For more information, please visit http://ftft.com/.

Safe Harbor Statement

Certain of the statements made in this press release are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. ‘amended, or of the Fellowship Act. Forward-looking statements include statements about our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that may be forward-looking statements. You can identify these forward-looking statements by the use of words such as “may”, “will”, “anticipate”, “assume”, “should”, “indicate”, “believe”, “intend”, “” expect”, “estimate”, “continue”, “plan”, “indicate”, “project”, “could”, “intend”, “target”, and other similar words and phrases from the future tense.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement, including, without limitation, the risks and uncertainties described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and our other reports and filings with the SEC. These reports are available upon request from the Company or the Securities and Exchange Commission, including through the SEC’s website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any forward-looking statements after the date hereof or after the respective dates on which such statements are otherwise made.

SOURCE Future FinTech Group Inc.

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