Benzinga | Sep 27, 2021 06:07AM EDT

AGM Group Holdings And HighSharp Electronic Technology Enter Into A Strategic Partnership

AGM Group Holdings Inc. ("AGMH" or the "Company") (NASDAQ:AGMH), an integrated technology company focusing on high-performance chip solutions, computing equipment and fintech software services, and HighSharp (Shenzhen Gaorui) Electronic Technology Co., Ltd ("HighSharp"), a renowned fabless integrated circuit designer that provides advanced semiconductor solutions for supercomputing hardware, today announced that they have entered into a definitive agreement for a strategic partnership that is expected to accelerate growths for both companies in the fast-growing global cryptocurrency markets.

This innovative partnership aligns the unique strengths and assets of AGMH and HighSharp by combining AGMH's leading software and technical services capabilities, and HighSharp's proven expertise as a next-generation high performance ASIC chip designer and manufacturing, in order to expand blockchain-oriented ASIC chip research and development, as well as to extend the full services of crypto mining equipment manufacturing and sales. More importantly, this long-term collaboration represents an advanced transformation for both businesses in addressing the dynamic needs of the market, as well as in creating compelling value for both companies and their respective shareholders.

Some key transaction details are listed below:

* Intellectual Property rights endorsement: for the six months period until March 25 2022, HighSharp will provide the latest ASIC chip technology and manufacturing services to AGMH as a top priority

* Product distribution: in return, AGMH will be solely responsible for client development on a global basis, with a target to generate orders in a total amount of US$100 million during the six-month term.

* Personal exchange for joint advanced R&D: If the partners achieve their respective targets, AGMH and HighSharp plan to form a Joint Venture, joined by HighSharp's key R&D team members, with the goal to integrate next generation product research and development into fabless integrated circuit design capabilities that provides advanced semiconductor solutions for supercomputing hardware. AGMH will own 60% equity in the Joint Venture.