Future Fintech Stock Sees Rollercoaster Day on Wall Street

News of a $35 million in a registered direct offering sent the stock up to $8 before falling down 11% on the day.
Benjamin WangApr 01,2021,21:16

Future FinTech Group Inc. (Nasdaq: FTFT) announced that it has entered into a definitive agreement with institutional investors for the purchase and sale of 5.74 million shares of its common stock at a price of $6.10 per share. The market responded with a wild day of trading; Future Fintech traded 113,000,000 shares, nearly ten times the average daily trading volume. The stock skyrocketed to over $8 per share at one point before falling back to Earth.

The blockchain-powered e-commerce and fintech services provider said in a statement today that the gross proceeds will be approximately $35 million in a registered direct offering priced at the market under Nasdaq rules. The closing of the offering is expected to occur on or about April 6.

A.G.P./Alliance Global Partners is securing the offering.

In addition, the company said today that it has signed an acquisition framework agreement to acquire Nanjing Ribensi which currently operates a bitcoin mining farm with a capacity to operate 30,000 bitcoin mining machines. The company's target bitcoin mining farm is located in Yajiang County, Sichuan Province, China, and it has all the necessary governmental approvals.

According to the company, the sellers have provided a minimum net profit guarantee of $2.3 million for 2021, $3 million for 2022, and $3.8 million for 2023.

On Monday, the company announced a deal to acquire $7.6 million worth of Antminer Bitcoin mining machines from Nanjing Shunru Electronic Technology Co. Ltd. It will buy 20,000 Bitcoin mining machines, said Future FinTech. The deal “guarantees” a minimum bitcoin hash rate of 200 PH/s for at least 180 days each year.

After the wild trading day, shares of Future Fintech closed at $5.52, down 10.89% on the day.

Topics:Future Fintech; China; U.S.