Benzinga | Aug 7, 2020 07:12AM EDT

AGM Group Holdings Inc., Through Its AGM Technology Limited Subsidiary, Signs LOI To Acquire Safe Gold Financial Holdings Limited In Proposed All-Cash Transaction

BEIJING, Aug. 7, 2020 /PRNewswire/ -- AGM Group Holdings Inc. ("AGMH" or the "Company") (NASDAQ:AGMH), an application software company providing accounting and ERP software, fintech software, and trading education software and website service, is pleased to announced that through its wholly-owned subsidiary, AGM Technology Limited ("AGM Technology"), the Company has entered into a letter of intent ("LOI") on August 7, 2020, with the shareholders of Safe Gold Financial Holdings Limited ("Safe Gold") to acquire 100 percent equity interest in Safe Gold and its wholly owned subsidiary Safe Gold Securities and Futures Limited ("Safe Gold SF").

Safe Gold is a Hong Kong-based financial services company which, through its wholly-owned subsidiary Safe Gold SF, holds Hong Kong Financial Services Licenses Type 1 (Dealing of Securities), Type 2 (Dealing in Futures Contracts), Type 4 (Advertising on Securities), Type 5 (Advertising on Futures Contracts), and Type 9 (Asset Management). Safe Gold is also a participant and trading right holder of both HKEX and HKFE.

Pursuant to the LOI, the total consideration of the proposed all-cash transaction is set to equal the combined net asset value for Safe Gold and Safe Gold SF as of June 30, 2020, plus a premium of HK$8.5 million, deducting a due from shareholders of HK$14 million, subject to certain adjustments and definitive agreements at the closing.