Future Fintech Group Inc. (NASDAQ: FTFT) has made an announcement on Thursday that it has inked an acquisition framework agreement. As per the framework deal, the firm will purchase the Nanjing Ribensi. The agreement has been inked between the shareholders of Nanjing Ribensi Electronic Technology Co., Ltd. and the FTFT.
The Frame deal is non-binding with the exception of the 'Confidentiality and Exclusivity' and 'Applicable Law and Dispute Resolution sections of the deal. The CEO of FTFT disclosed that the firm has made an internal firm committee, the FT Bitcoin Mining Hash Rate Committee, to supervise and administer the possible buying, maintenance, and exploitation of all of its bitcoin mining linked development.
Financial Consideration of the Framework Agreement
As per the deal, FTFT will make the payment of a total of RMB 60 million (nearly $9.1 million) for the buying of Nanjing Ribensi to the shareholders of the Nanjing Ribensi (the Sellers). The shareholders assured that the net income of Nanjing Ribensi may not be less than RMB 15 million (nearly $2.3 million) for 2021, RMB 20 million (nearly $3.0 million) for 2022, and RMB 25 million (nearly $3.8 million) for 2023.
Furthermore, as per the deal, if the guaranteed target will not be observed by FTFT in the future, the Sellers will endure any losses related to these figures and make the firm whole as to these forecasted net profit results. Moreover, the shareholders have also guaranteed that the set mining farm will retain routine operations for at least six to eight years and that the ongoing operation team of Nanjing Ribensi would continue to be held accountable for the work of the mining farm.
About Nanjing Ribensi
Nanjing Ribensi has gained recognition as a bitcoin mining farm with the capability to run 30,000 bitcoin mining machines. Bitcoin mining farms are data centers that are fitted to host mining machines to mine bitcoins or other cryptocurrencies and can involve considerable technical, energy, and other resources.