Benzinga | Feb 10, 2021 08:06AM EST

ATIF Holdings Limited Releases Letter to Shareholders From The CEO and Director of The Board

ATIF Holdings Limited (NASDAQ:ATIF, &nbsp, the &quot, Group&quot, , &quot, ATIF&quot, or &quot, we&quot, ))), a holding group providing business and financial consulting in Asia and North America, today released a letter to shareholders from the Chief Executive Officer and Director of the Company's board of directors.

Dear shareholders,

The 2020 COVID-19 global pandemic has brought negative impact and challenges to everyone. However, it brought opportunities for ATIF to think deeply about our development and to adjust ourselves to excel in light of the difficult time due to the pandemic. In reviewing our performance, we strive to continue to serve our customers in light of adversity, and had strategically transformed our business model to launch new main business sectors with high growth potential.

Highlights

1.73 million protective masks donation: At the end of January and early February 2020 during the outbreak of COVID-19 in Wuhan, China, we urgently purchased 1.7 million protective masks for donation and delivered the protective masks in batches to Wuhan. In April 2020, we further purchased and donated additional 30,000 protective masks and delivered to hospitals, government departments as well as local communities in Los Angeles and New York to help to fight against the epidemic. We strive to take social responsibility to be good corporate citizen.

A total of $7.8 million consulting service agreements: From February to November 2020, we had signed consulting service agreements totaling $7.8 million with four Chinese companies and four U.S. companies in anticipation of their entrance into the U.S. capital market. We customized the listing planning for companies and helped companies to obtain quality resources to provide business consulting, capital market advisory for business planning and strategy development, and investor and public relations services for companies entering into the U.S. capital market,

Our client successfully listing on the Nasdaq: In January 2021, our client Qilian International Holding Group Limited ("Qilian") announced its initial public offering on Nasdaq Global Market and had received aggregate gross proceeds of US$25 million from its Offering, before the deduction of underwriting discounts and other related expenses. Qilian made a strong debut on the U.S. stock market as the first Chinese Gansu stock to go public in the U.S., soaring 100% on the first day of trading.

Launch of IPOEX.com: In September 2020, we launched an online financial consulting service platform IPOEX.com to provide global market information and investment and financing advisory services. IPOEX.com has so far covered a database of more than 62,000 investment institutions around the world, and we have developed strategic collaborations with governmental institutions, chambers of commerce, associations and enterprises at all levels in China to continuously introduce companies to become paid members of the platform.

USD$4.0 Million Registered Direct Offering: In November 2020, ATIF successfully completed the closing of a registered direct offering for aggregate gross proceeds of approximately $4.0 million, before deducting placement agent fees and offering expenses payable by us with certain institutional accredited investors, demonstrating the high recognition from global institutional investors for our performance in the industry and market.

Relocated headquarters to Los Angeles, U.S., launching new business model: In January 2021, in order to streamline the management chain and to improve management control with lower costs, we officially relocated our operating headquarter to California, U.S. and launched new business model with asset management, investment holding and online financial information business, which we expected to have high revenue and strong profit growth potential. Asset management is the new main business of ATIF. With our unique investment trading strategy, our team had achieved ideal results in 2020. In February 2021, we have completed the filing of our private fund, ATIF-1, of which the first batch is expected to be USD 50 million.

In light of ATIF moving its headquarter to California and transitioning to a new business model focusing on asset management, investment holding and media services, we no longer believe that we have synergy with Leaping Group Co., Ltd ("LCG"). We decided to dispose our shareholding in LGC due to LGC's undesirable financial performance, in order to focus on growing our business and improving our financial performance. We sold our shareholding of LGC and the transaction was completed on January 29, 2021 and LGC is no longer our subsidiary