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Why did Future FinTech Group Inc. (FTFT) stock rally today?

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Future FinTech Group Inc. (FTFT) stock rallied today following the news of 51% acquisition of equity of Shanghai Dianfa Internet Technology Co., Ltd. FTFT stock price saw a push of 13.95% to reach $2.94 a share as of this writing. The stock was gloomy in the previous trade and went down by 1.15% at closing. Let’s deep dive to explore more of it.

What’s Happening?

Future FinTech Group Inc is operating as the blockchain eCommerce platform that combines blockchain and internet technology in China. The stock disclosed today that it signed an acquisition term sheet on August 30, 2021. According to the term sheet, FTFT stock will acquire 50% equity of Shanghai Dianfa Internet Technology Co., Ltd. The purchase price for this acquisition is RMB 17,850,000 (approximately US$ 2,762,730). FTFT stock will pay RMB 6,000,000 (approximately US$ 928,650) as a capital investment in Dianfa Technology. The remaining RMB 11,850,000 will be paid in the form of shares of FTFT common stock to the selling shareholders of Dianfa Technology.

This acquisition will help FTFT stock entering the supply chain finance business of both small and medium-sized enterprises. The stock is anticipating developing a financial ecosystem with advanced financial technology. This ecosystem will include the financial and lending institutions, merchants, retail businesses. The platform will be efficient enough to optimize capital flows for SMEs and microfinance companies.

FTFT stock established UK Subsidiary:

On August 12, 2021, FTFT stock established a new subsidiary, FTFT UK Limited to expand its digital financial services business in Europe. As a first step, the stock will develop a “super app” that will provide personal digital finance products and services. Also, it established a team of professionals in the U.K.

Future plans of FTFT stock:

FTFT stock is looking forward to developing financial products for institutional investors and high net worth investors across the globe. It is also striving to provide enhanced services worldwide through its approved subsidiaries. That is the reason Future Fintech is planning to include many subsidiaries with appropriate licenses in its operational matrix. Future FinTech wants to play the lead role in the industry by integrating its R&D center, institutional investment management, and fintech. This integration will result in international transfers, mobile payments, wealth management services, and many other financial services.

Conclusion:

Investors are responding positively to the recent acquisition announcement by the Future FinTech stock. The stock is progressing in terms of its financial services and products. It has gained almost 80% year to date. In a nutshell, this stock can be a good bet for investors in the long run.

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