Benzinga | May 24, 2021 08:33AM EDT

CLPS Says On May 18 Entered Capital Increase Agreement With MCT, Will Hold 53.33% Ownership Stake In MSCT Investment Holdings

CLPS Incorporation (NASDAQ:CLPS) ("CLPS" or "the Company"), today announced a strategic cooperation with Minshang Creative Technology Holdings Limited ("MCT", 01632.HK) to jointly develop a next generation loan trading software and to explore global financial technology services market.

On May 18 2021, CLPS, through its wholly owned subsidiary, Growth Ring Ltd., entered into a Capital Increase Agreement (the "Agreement") with MCT. Pursuant to the Agreement, CLPS will hold 53.33% ownership stake in MSCT Investment Holdings Limited ("MSCT"), a wholly-owned subsidiary of MCT, upon closing of the transaction, while MSCT will in turn own the intellectual property rights of the loan trading software of MCT.

CLPS will leverage its competitive advantage and extensive experience as an IT services provider to international banks and other financial institutions to upgrade and improve the existing loan trading software to cope with the need of foreign market. Following the successful upgrade, which includes improved system and internationally accepted features, CLPS intends to launch the next generation loan trading software in Hong Kong and Southeast Asia region.

MCT is a company listed on the Hong Kong Stock Exchange with its headquarters located in Hong Kong. Minsheng E-Commerce Holding (Shenzhen) Co., Ltd., an e-commerce company established in Mainland China, is a controlling shareholder of MCT.

Mr. Raymond Lin, Chief Executive Officer of CLPS, said, "We have been focused on our mergers and acquisitions initiative not only in China, but also overseas as part of our global expansion strategy. Our cooperation with MCT, which involves the subscription of majority equity stake of MSCT and the plan to optimize its loan trading software, complements our capability in developing high quality products and solutions. It will also improve our edge and accelerate the pace of our technological innovation overseas. I believe that the partnership will be an important milestone in our business expansion to further enhance our brand awareness in Hong Kong, Southeast Asia, and in other geographic markets. Through M&A, we are committed to pursuing the research and development of financial products to achieve continued growth that will bring greater value to our shareholders."