RTTNews | Apr 14, 2021 09:46AM EDT

09:46 Wednesday, April 14, 2021 (RTTNews.com) - Shares of Future FinTech Group Inc. (FTFT) are currently slipping over 13% on Wednesday morning after the company announced it has agreed to buy 51% stake in cryptocurrency mining farm operator Mingtang Network at about $7.0 million.

FTFT is currently trading at $4.28, down $0.68 or 13.7097%, on the Nasdaq.

Future FinTech, a blockchain-based e-commerce business and a fintech service provider, signed an equity acquisition framework agreement to acquire a 51% stake in Mingtang Network Technology Co. Ltd. from its shareholders.

Mingtang Network is located in the Changji Zhundong Economic and Development Zone in the Xinjiang Autonomous Region of China. It operates a cryptocurrency mining farm.

The company will acquire 51% of the equity of Mingtang Network at a purchase price of RMB45.9 million, about $7.0 million, based on a valuation of 100% of the equity of Mingtang Network of RMB90 million.

Further, Future FinTech and the sellers have agreed to invest in the construction of a Phase II data center of a 500,000 capacity load for cryptocurrency mining machines within a time frame to be agreed to by both parties. The total investment in the Phase II project is expected to be about RMB600 million or around $91.7 million. This investment will be funded according to the ownership percentage of Mingtang Network, i.e. 51% by the company and 49% by the sellers.

Read the original article on RTTNews ( https://www.rttnews.com/3184951/stock-alert-future-fintech-slips-13-to-buy-major-stake-in-cryptocurrency-mining-farm-operator.aspx)

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