The blockchain e-commerce firm Future Fintech Group Inc (FTFT) has been seeing its stock price surging in the premarket session today. As of 08:27 a.m. EST, the price of the company’s shares was up +8.96% to $5.84 following news of an update about its potential acquisitions.
What is actually happening?
Incorporated in Florida, Future FinTech is an e-commerce company specializing in blockchain technology and a service provider for financial technology. This Company offers and operates an online shopping mall Chain Cloud Mall running on blockchain, an e-commerce platform known as NONOGIRL for cross-border services, as well as an incubator promoting blockchain-based application development. The Company is also developing e-Commerce technology as well as financial technology based on blockchain platform.
After the closing bell on Friday, FTFT announced an update on three potential acquisitions. The updates were regarding the delays involved in owning 90% of Nice Talent Asset Management Limited, and the cancellation of the potential acquisitions of Asiasens Investment Holding Pte. Ltd., and Blocknance Financial International SRL.
- The Company previously announced on July 16, 2020 that it entered into an agreement to acquire 90% of the issued and outstanding shares of NTAM, a Hong Kong-based asset management company, through a share exchange agreement with Joy Rich Enterprises Limited.
- However, both the global pandemic Covid-19 and the slow regulatory process in Hong Kong influenced the closing process.
- Because of that, there had been significant delays towards the completion of the acquisition.
- Closing was stipulated to be by December 31, 2020, but since July 2020 there have been changes in NTAM’s business performance as well as FTFT’s share price.
- According to the current situation, the parties have agreed to re-negotiate NTAM’s purchase price in accordance with the Company’s recent stock price level.
- A total of 60% of the total issued and outstanding shares of Blocknance have been acquired under a previously announced term sheet signed by the Company with Blocknance, a company incorporated in the Dominican Republic, and its selling shareholders, in January of 2021.
- The parties could not come to a decision on the details of the proposed acquisition, and they agreed to terminate the term sheet.