just now
November 13, 2023 - Future FinTech Group Inc. (NASDAQ: FTFT), a leading financial and digital technology service provider, announced the successful conclusion of the acquisition of Alpha International Securities (Hong Kong) Ltd. ("Alpha HK") on November 7, 2023. This strategic move was carried out by Future FinTech's wholly-owned subsidiary, Future FinTech (Hong Kong) Limited ("FTFT HK"). Following the acquisition, the entities have been rebranded as 'FTFT International Securities and Futures Limited' and 'FTFT Information Services (Shenzhen) Co. Ltd.' respectively.
The agreement for this acquisition was initially disclosed on March 1, 2023, when FTFT HK entered into an agreement to acquire Alpha HK and Alpha Information Services Shenzhen Limited ("Alpha SZ") from Alpha Financial Limited ("Alpha Financial"). The acquisition involved all the issued and outstanding shares of Alpha HK and Alpha SZ, which were acquired for HK$15,659,949 (approximately US$2.0 million) in cash, based on the net equity value of both entities as of December 31, 2022. The acquisition received regulatory approval from the Hong Kong Securities and Futures Commission ("HKSFC") on August 11, 2023.
Established in 2010, Alpha HK specialises in three primary areas of financial services:
(1) online brokerage services encompassing Hong Kong equities and US equities in collaboration with a US brokerage firm,
(2) underwriting and distribution of Hong Kong IPOs, and
(3) underwriting U.S. dollar-denominated bonds issued by Chinese companies in Hong Kong.
Alpha HK holds Type 1 "Securities Trading," Type 2 "Futures Trading," and Type 4 "Securities Advisory" financial licenses issued by the HKSFC, while Alpha SZ provides technical support services to Alpha HK.
Steven Xiang, Managing Director of Alpha HK, commented, "Alpha HK has a wealth of experience in international financial markets and technical prowess in online services. Our team comprises professionals from renowned financial institutions and internet companies. With over 60,000 registered users and a track record of underwriting 29 IPOs and 10 Chinese municipal and enterprise bonds since 2020, we remain dedicated to offering a comprehensive suite of financial services in Hong Kong, including online stock brokerage, Hong Kong IPO underwriting, financial advisory, and US dollar-based Chinese municipal and enterprise bond issuance services."
Mr. Shanchun Huang, Chief Executive Officer of Future FinTech, commented on the significance of this acquisition, stating, "This strategic move aligns with our vision of creating synergies with our existing subsidiaries, such as Nice Talent Asset Management Limited in Hong Kong, FTFT Pay in the UK, cryptocurrency mining operations in Ohio and Paraguay, and other financial services businesses in development. FTFT International Securities and Futures Limited will play a pivotal role in our ongoing transformation as we internationalise and diversify our revenue streams. Our ultimate goal is to evolve into a diversified fintech company, offering a spectrum of boutique financial services and innovative new business platforms to deliver top-notch financial solutions to our clients."
Comprehensive details of the acquisition agreement can be found in the Form 8-K and its exhibits, which were filed with the Securities and Exchange Commission on March 1, 2023.
