Benzinga | Aug 11, 2020 08:38AM EDT

SOS Ltd. Announces Sale Of Its P2P Business And Its Focus On Becoming A Leading Health And Emergency Services Company In China

QINGDAO, China, Aug. 11, 2020 /PRNewswire/ --SOS Limited, (NYSE:SOS) (formerly China Rapid Finance Limited, the "Company") today announced it has completed the disposition of its legacy P2P business after the satisfaction or waiver of all closing conditions. Proceeds from the disposition is to be used for working capital and general corporate purposes.

Given recent government regulations in China against the P2P industry, it became evident that the opportunity to grow the P2P business was limited. In addition, virtually all of the P2P business' assets are being held at the regulators request for the benefit of the platform lenders. Management believes that disposal of the P2P business is the most sustainable path for its next phase of growth, and that time and capital were therefore better focused on continuing the expansion of its rapidly growing health and emergency services business unencumbered by the issues surrounding the P2P business.

Asia-Pacific Consulting and Appraisal Limited ("APA") delivered its opinion to the Board of SOS Limited ("SOS") that, as of the date of the written fairness opinion and based upon and subject to the factors and assumptions set forth therein, the sale consideration to be received by SOS pursuant to the share purchase agreement was fair from a financial point of view to the shareholder of SOS. APA's opinion and analysis took into consideration factors including the legacy P2P business' operating environment, the assets and the earning opportunities available in that business.

Chairman Mr. Wang commented: "The legacy P2P business needed to be disposed so that we are able to focus all our energy on realizing our vision to become a leader in the health and emergency services industry in China. We are excited about what the future will bring."

For a detailed description of the transaction, please refer to the Company's current report on Form 6-K filed on August 7, 2020.