Benzinga | Apr 21, 2021 07:05AM EDT

Future FinTech Signs Term Sheet To Purchase Khyber Money Exchange For $820,170

Future FinTech Group Inc. (NASDAQ:FTFT) ("hereinafter referred to as "Future FinTech", "FTFT" or "the Company"), a leading blockchain-based e-commerce business and a fintech service provider, announced today that on April 13, 2021, the Company signed a preliminary term sheet (the "Term Sheet") to acquire 100% of the equity of Khyber Money Exchange Ltd. ("Khyber Exchange") from its shareholder (the "Seller"). The Term Sheet represents terms for a proposed transaction subject to definitive documentation and is non-binding except for its 'Exclusive Period' and 'Confidentiality'; and 'Governing Law' sections.

Khyber Exchange is a money transfer company with a platform for transferring money worldwide through one of its agent locations or via its online portal, mobile platform or over the phone. Khyber Exchange is headquartered in the UK and has offices in Germany and Italy.

According to the Term Sheet, the Company will acquire 100% of the equity of Khyber Exchange at a purchase price of (euro)685,000 (approximately US$ 820,170). The acquisition will be subject to due diligence by the Company and the Term Sheet stipulates that the Company has a 30-day period in which it has an exclusive right to negotiate for and purchase the equity of Khyber Exchange.

Shanchun Huang, Chief Executive of Future FinTech, commented, "We are pleased about this potential acquisition as it further extends our footprint into the fintech sector. We believe that this is a high margin business that will enable us to capitalize upon an increasing level of international money flows and that it could ultimately be synergistic with the Chinese payment settlement services company, Hi-Card Business Service Co., Ltd., in which we are planning to acquire a 60% interest pending due diligence and final negotiation between the parties as disclosed in our press release on March 23, 2021. Our objective is to become diversified fintech enterprise that leverages current opportunities and integrate them into a comprehensive business platform, and to create a company that can meet current financial needs as well as anticipate and develop fintech solutions for the future."

Rahim Sham, Chief Executive Officer of Khyber Exchange stated: "As a worldwide money transfer company, Khyber Exchange can transfer money over 130 countries through its agents or its online portal, mobile platform or over the phone. Money transfers can be picked up in its offices or via the beneficiary's bank account which is credited with the transmitted funds within 24 to 48 hours. Khyber Exchange guarantees its customers that its transactions are executed at the best possible exchange rate, are safe and reliable and are instantly processed. The potential acquisition by FTFT will help Khyber Exchange expand its business and operation in Asia, especially in the fast-growing Chinese market."