MICT Acquires Key License for Soon-to-Launch Stock Trading and Wealth Management Platform and Mobile App in China and Hong Ko...
February 25 2021 - 09:25AM
MICT, Inc. (Nasdaq: MICT) (“MICT” or the “Company”) today announces
it has received approval from the Hong Kong SFC (Securities and
Futures Commission) to complete the acquisition of Huapei Global
Securities, Ltd. (“Huapei”), which provides the Company with a
licensed platform to facilitate the trading of securities on the
major stock exchanges in Hong Kong, the United States, and China
for its Chinese and Hong Kong clientele.
As previously announced, the Company acquired a
9% stake in Huapei on October 1, 2020 with the option to acquire
the remaining 91% upon the receipt of approval from the regulatory
authority.1 Having gained the approval of the Hong Kong SFC, the
acquisition is expected to be finalized within the next two to
three weeks. The completion also enables the Company to commence
final stage testing of its trading platform app in a live
environment, ahead of its subsequent launch.
China is one of the largest contributors to
online securities trading, with China and Hong Kong based investors
accounting for around 45% of total trading volume in 2017. China’s
online retail securities market has grown significantly in recent
years, from $1.8 trillion in 2012 to $12.7 trillion in 2017,
representing compound annual growth of 47.8%, and is expected to
reach $30.3 trillion by 2022. China’s population of approximately
1.4 billion, includes more than 400 million millennials and around
325 million Generation Z, who are more likely to transact over apps
and other online platforms.
The completion of the Huapei acquisition allows
MICT the opportunity to attract these investors, whether through
leveraging its existing client base or through the Company’s
strategic marketing programs or partnerships with the big Chinese
portals who recognize the value proposition for their users. In
addition, the Company has recruited a seasoned management team
which is experienced and well qualified to drive these customers to
such online platforms.
“The acquisition of Huapei marks a pivotal event
for MICT, in particular, Huapei’s licenses allow us to launch our
mobile app-based equities trading platform and gains us access into
the one of the world’s largest retail investment markets,” said
Darren Mercer, MICT’s CEO. “We believe our platform will be
competitive with other comparable offerings in China and that it
possesses all of the attributes needed to quickly gain market
share, including a strong balance sheet to offer margin financing;
a strategic marketing plan to attract new users; relationships with
major online platforms, allowing access to their user-bases; and an
interface that appeals to the fast-growing Chinese online retail
investor market. Based on these factors, we believe, once
launched, our platform will provide a meaningful
contribution to MICT's overall revenue in 2021 and beyond and
deliver accretive shareholder value.”
About MICT
MICT, Inc. (NasdaqCM: MICT) operates through its
subsidiaries, GFH Intermediate Holdings Ltd. (“GFHI”) and Micronet
Ltd. (“Micronet”). GFHI’s versatile proprietary trading technology
platform is designed to serve a large number of high growth sectors
in the global fintech space. Primary areas of focus include online
brokerage for equities trading and wealth management services and
sales of insurance products in several high-growth foreign markets,
including Asia, where GFHI owns a substantial database of users.
Micronet operates in the growing telematics and commercial Mobile
Resource Management market, mainly in the United States and Europe.
Micronet designs, develops, manufactures, and sells mobile
computing solutions that provide fleet operators and field
workforces with computing solutions in challenging work
environments.
Forward-Looking Statements
Litigation Reform Act of 1995 and other U.S.
Federal securities laws. These forward-looking statements include,
but are not limited to, statements related to revenue targets, the
growth of the Chinese Insurance market and other statements that
are not historical facts. Such forward-looking statements and their
implications involve known and unknown risks, uncertainties and
other factors that may cause actual results or performance to
differ materially from those projected. The forward-looking
statements contained in this press release are subject to other
risks and uncertainties, including those discussed in the "Risk
Factors" section and elsewhere in the Company's annual report on
Form 10-K for the year ended December 31, 2019 and in subsequent
filings with the Securities and Exchange Commission. Except as
otherwise required by law, the Company is under no obligation to
(and expressly disclaims any such obligation to) update or alter
its forward-looking statements whether as a result of new
information, future events or otherwise.
Contacts:info@mict-inc.com(201) 225-0190
1
https://investors.mict-inc.com/news/news-details/2020/MICT-enters-into-agreement-to-acquire-Hong-Kong-securities-and-investments-firm-serving-China-Hong-Kong-and-United-States/default.aspx.
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