Future FinTech Group, a leading blockchain e-commerce company and a service provider for financial technology, announced it entered into a SHARE EXCHANGE Letter of Intent (“LOI”)Â with Asen Tech Group Limited on Aug 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(Future FinTech ).
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Asen owns an OJK Fintech Lending license and a Koperasi Simpan Pinjam financial 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 with Shopee, Tokopedia, Lazada, Bukalapak and 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.
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