Up Fintech to Obtain U.S. Self-clearing License in Third Quarter
The U.S. entity of the Chinese online brokerage company will obtain a self-clearing license in the U.S. after the acquisition of Marsco later this year.
An online broker serving Chinese investors, Up Fintech Holding Ltd. (Nasdaq: TIGR), announced Tuesday it is getting a self-clearing license in the United States as soon as in the third quarter.
The company, which became publicly traded on Wall Street in March, said in a statement today that its U.S. subsidiary, Tiger Fintech Holdings Inc. has signed an acquisition agreement with Marsco Investment Corp. for $9.4 million, to be paid in a combination of cash and Class A ordinary shares of Up Fintech.
The deal, which will give a self-clearing license to Tiger, has been approved by the board of directors of both parties and is expected to be completed in the third quarter of this year, according to the report.
While the announcement sent the shares in the company as high as $6.25 in pre-market trading Tuesday, its stock ended the day at a 4 percent drop, closing at $5.22 per American depositary share.
Marsco is a U.S. online brokerage service platform that was established in 1986 and is a clearing member of the U.S. Depository Trust and Clearing Corporation.
Tianhua Wu, the chief executive officer and director of Up Fintech, said in the announcement, "I am very pleased to have Marsco joining Tiger Fintech. Marsco has a good track record for the past 30 years. It brings in rich broker dealer experience in execution and clearing that will further solidify our position as the leading online broker with proprietary technology from front end to back end. We believe this transaction will provide us with numerous synergies to accelerate our growth in the U.S and greatly enhance user experience."
Mark Kadison, the co-founder and chief executive officer of Marsco, said, "We at Marsco are very excited to become part of the Tiger Fintech team. We believe that the combination of Tiger's advanced technology driven platform with Marsco's self-clearing and back office expertise will offer customers an outstanding combination of leading-edge technology, innovative products and competitive pricing."