Benzinga | Dec 8, 2020 08:31AM EST

Sino-Global Announces Letter Of Intent To Acquire 51% Of Shenzhen Jiayoubao Mobile Internet Co., Ltd; Sino-Global Has Agreed To Pay $1.1M Shares Of Common Stock

ROSLYN, N.Y., Dec. 8, 2020 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ:SINO) ("Sino-Global", the "Company" or "we"), a non-asset based global shipping and freight logistical integrated solutions provider, today announced that the Company has entered into a non-binding letter of intent (the "LOI") to acquire 51% of Shenzhen Jiayoubao Mobile Internet Co., Ltd. ("Jiayoubao").

Pursuant to the terms of the LOI, Sino-Global has agreed to pay approximately $1.1 million of shares of its common stock, based on the average closing bid price for the consecutive thirty trading days prior to the execution date of the definitive purchase agreement.

Founded in 2014, Jiayoubao is an innovative mobile Internet company. Through its "Didi Jiayou" technology platform, Jiayoubao engages in mobile refueling, location based service map navigation, QR code mobile payments, online financial management, mobile app development, and IT operations. Didi Jiayou has been well integrated into the industry's sales strategies and customer-facing experiences, and its platform serves over 70 million users. Through this acquisition, SINO will be more effectively integrated into the current transport capacity resources of the transportation logistics supply chain (such as truck companies) while furthering its own technological content.

Mr. Lei Cao, Chief Executive Officer of Sino-Global, commented, "The acquisition of Jiayoubao supports our strategic growth plans by using Jiayoubao's high-technology platform to expand and enhance the transport capacity of Sino-Global's shipping logistics business. Supply chains in the logistics and transportation industry have been hampered as a consequence of the Covid-19 outbreak. By joining forces with Jiayoubao, we expect to strengthen our combined abilities to expand our industry and unlock market opportunities. Bringing in Jiayoubao's technology platform marks our commitment to advancing our capabilities to penetrate the market."