Benzinga | Aug 20, 2021 08:31AM EDT

CLPS Reports Completion Of Capital Increase Deal In MSCT

CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today announced that it has completed the previously announced Capital Increase Agreement (the "Agreement") transaction with Minshang Creative Technology Holdings Limited ("MCT", 01632.HK). CLPS, through its wholly-owned subsidiary, Growth Ring Ltd., and MCT now hold 53.33% and 46.67% in MSCT Investment Holdings Limited ("MSCT"), respectively. Through the Agreement, both parties have agreed to develop a next-generation loan trading software, a software as a service (SaaS) solution, and to explore financial technology services market in a global scale.

Upon closing of the transaction, MSCT has started to innovate and streamline the commercial version of its next-generation credit loan trading software, powered with a complete configurable workflow and a high degree of automation. As a result, the software can provide a user with an entire loan lifecycle support for personal installment loan, purchase of consumer credit, mortgage, and hire purchase, among other transactions. The upgraded software is expected to be completed by December 2021. It will be initially launched and marketed in Hong Kong SAR and Southeast Asia by early next year before offering it in Japan and the U.S. markets.

MCT is a company listed on the Hong Kong Stock Exchange with its headquarters located in Hong Kong. Minsheng E-Commerce Holdings (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, "The Company's investment in MSCT fully opens up strategic cooperation with MCT. Our extensive experience as an IT services provider with a focus on international banks and other financial institutions serves as a foothold in developing financial software products and solutions. Together with MCT, we are excited to jointly explore business opportunities in the global financial technology services market."

Mr. Wu Jiangtao, Chairman and Chief Executive Officer of MCT, said, "We strongly believe that our cooperation with CLPS will yield a broad potential in the global market. CLPS's highly regarded brand impact combined with our competitive advantage in digital transformation will mutually benefit our business and IT solution capabilities. We are optimistic to achieve greater success in this cooperation going forward."