Future FinTech Announces Digital Assets Transfer Agreement

XI'AN, China, Jan. 25, 2018 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("Future FinTech", "FTFT" or "the Company"), a financial technology company and integrated producer of fruit-related products, today announced that on January 23, 2018, one of its wholly owned subsidiaries, DigiPay FinTech Limited ("DigiPay"), entered into an agreement to acquire 60% of the digital assets associated with DCON, a blockchain development project that has developed 100 communities utilizing blockchain technology and which intends to conduct a variety of financial businesses to provide users with a diversified blockchain experience.

"We believe that this agreement furthers our strategic plan to rapidly grow our company into a diversified fintech firm. The acquisition of the DCON digital assets will enable us to realize the value connectivity between cryptocurrencies and the end user," said Mr. Hongke Xue, Chief Executive Officer of Future FinTech. "We foresee an ongoing trend where various cryptocurrencies will play a vital role in financial businesses and create value for customers by connecting them with each other. Our goal is to accelerate the application of practical blockchain technologies for use in the lives of real people."

The DCON digital assets to be acquired by the Company include 60% of all business and technology components attributable to DCON including codes, software, applications, technologies, trading platforms, digital rights, authentication systems, agreements and contracts, intellectual property, tokens and the DCON communities built in Nova Realm City ("NRC").

DCON is the only designated financial center in NRC (see "About Nova Realm Limited" below).  DCON offers an efficient trading system where the mBTC (a MilliBitcoin, equal to one thousandth of a bitcoin) is the only token accepted for transaction settlement within DCON. mBTC transactions can be confirmed within seconds, and the platform allows 5,000 transactions per second while keeping transaction fees low. The NRC Community is composed of different segments including SHE Insurance, a decentralized mutual assistance community which utilizes blockchain technology to secure medical services, and UniGame, a platform for sports betting with transparent data using the open characteristics of blockchain technology. With more projects expected to join the community in the future, the Company believes that NRC will attract huge user traffic for DCON. DCON reports that it has now completed its launch on the NRC community, and that as of December 30, 2017, 100 communities have been established in NRC.

The transfer agreement stipulates that the Company will pay $9.6 million for the transfer of 60% DCON digital assets, to be paid through the issuance of 1.2 million Company shares to the seller of the DCON digital assets at $8.00 per share. Both DigiPay and the seller of the DCON digital assets have agreed to establish an operational company in Japan with the tentative name 'DCON DigiPay Corp.' into which they can transfer the DCON digital assets. Future FinTech will hold a 60% equity interest in this entity and seller's designated company, Nature Worldwide Resources Ltd. will hold a 40% equity interest in this entity.

"We believe that blockchain technology is a disruptive technology that will change the way that companies and people interact. By developing a blockchain financial center, we hope to create a value chain using blockchain cryptography that will connect currencies, users and projects to form a mutually beneficial ecological model to maximize the business value of blockchain technology," concluded Mr. Hongke Xue, Chief Executive Officer of Future FinTech.

Related Recent Event

On January 4, 2018, the Company previously announced that it received a 5% equity interest in Nova Realm Limited ("Nova Realm"), which was gifted to the company by Mr. Yongke Xue, a director of Future FinTech. Mr. Yongke Xue owns 55% of Nova Realm. Nova Realm is a blockchain technology research and development company registered in the United Kingdom. Nova Realm developed NRC, which it believes to be the first-ever blockchain technology value community registered with real name users and delivers asset-based digital services to global blockchain projects and provides a platform for members to communicate and participate in these projects.

About DCON

DCON is a blockchain development project that is creating an open and transparent digital payment system backed by blockchain technology with planned businesses including payment and settlement, cash flow, asset storage, financial lending, online insurance, asset sales, private placements, project crowdfunding and other diversified financial services products. DCON intends to become a blockchain financial center that breaks the barrier among cyptocurrencies and links users with users, and users with blockchains to realize a completely new and innovative financial services model. In addition, DCON is the only designated financial center in NRC's largest community and the only exchanger of mBTCs for circulation of currencies in the NRC community, and therefore plays a central role in all of the financial activities of the NRC community. For more information, please visit DCON's Chinese website at: http://www.dcon.cc.

About Nova Realm Limited

Nova Realm Limited ("Nova Realm") is a blockchain technology research and development company registered in the United Kingdom. Nova Realm developed Nova Realm City ("NRC"), which it believes to be the first-ever blockchain technology value community registered with real name users and which delivers asset-based digital services to global blockchain projects. NRC's mission represents the first interaction community with a real-name registration system in the world.

The operation of the NRC community is ensured through blockchain technology where the legitimate allocation of community funds is safeguarded through multiple signatures and the community's major events are decided through a voting mechanism. For more information, please visit Nova Realm's Chinese website at http://www.nrc.one/.  

About Future FinTech Group Inc.

Future FinTech Group Inc. ("Future FinTech", "FTFT" or the "Company"), is a fintech company that is developing an operational platform to utilize blockchain technology to participate in the shared economy, as well as for the distribution, marketing and sales of various products. The Company's legacy business is the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in China and certain overseas markets, and FTFT is utilizing fintech solutions to operate and grow this business. The Company is also developing a regional agricultural products commodities market with the goal to become a leader in agricultural finance technology. For more information, please visit http://www.ftft.top/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2016 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

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SOURCE Future FinTech Group Inc.