Future FinTech Group Inc. (Nasdaq: FTFT) announced Wednesday that it has scored a partnership with the School of Economics and Finance of Xi'an Jiaotong University to establish a blockchain finance research institute.
The blockchain-based e-commerce company and provider of financial technology services said the two will establish a blockchain finance institute for research and cooperation on blockchain technology in the financial industry. The institute will set up a foundation for establishing post-doctoral mobile stations.
Shanchun Huang, the chief executive officer of FTFT, stated, “Blockchain technology can solve the problem of customer fund security in the financial field. It can improve the speed and efficiency of banking, remittance and settlement, as well as the prevention of systematic risk from malicious short-selling in securities transactions. It can solve the problems which cannot be solved by traditional technologies."
Last week, the company reported it closed the direct offering of 2 million shares of its common stock at $5.95 per share. The gross proceeds of this offering were $11.9 million, the company said. Future FinTech plans to use the proceeds from the offering for general corporate purposes.
Investors of Future FinTech are relying on the promise of blockchain rather than the company's financial stability. Future FinTech is unprofitable, showing its earnings have declined 36% per year over the past five years. Impacted by the coronavirus, the revenues of Future FinTech declined sevenfold in the three months through September to $43.66 million.
Share of FTFT closed at $10.17 apiece on Wednesday, up 5%.