NEW YORK - Future FinTech Group Inc. (NASDAQ:FTFT), a micro-cap technology company valued at approximately $9 million, announced today a strategic shift in its Blockchain Business Division to intensify development in web3 technology, high-performance computing, artificial intelligence (AI), and other blockchain-related projects. According to InvestingPro data, the company faces significant challenges with negative EBITDA of $14.2 million in the last twelve months, though analysis suggests the stock may be undervalued at current levels. The division, which was established in December 2021, will also maintain its current operations while pursuing its growth strategy.
CEO Li Hu emphasized the company's efforts in creating digital financial products and services that harness AI to enhance the web3 industry, which represents the evolution of the internet with blockchain technology at its core. Hu expressed confidence that this refocused strategy would reinforce Future FinTech's position as a leader in the blockchain space.
Kai Xu, with a background in blockchain and big data, has been appointed as President of the Blockchain Business Division. Xu's experience includes previous roles as COO of Future FinTech and Vice President of the blockchain division, as well as Deputy General Manager of FT Commercial Group Ltd., a subsidiary of the company.
Joining the leadership, Weifang Peng has been named Vice President of the Blockchain Business Division. Peng brings a wealth of experience from the Bitcoin mining sector since September 2015 and previously managed FTFT's global mining investment business from 2021 to 2022.
Future FinTech's operations span asset management, brokerage, and investment banking services in Hong Kong; a cross-border payment business in the United Kingdom (TADAWUL:4280); supply chain trading and finance in China; and digital asset mining farm operations in the United States. The company is committed to leveraging digital and internet technology to enhance financial services for businesses and individuals. Financial metrics from InvestingPro reveal a challenging environment with revenue declining 41.8% year-over-year, though the company maintains a healthy current ratio of 2.68, indicating strong short-term liquidity. For deeper insights into FTFT's financial health and access to 11 additional ProTips, consider an InvestingPro subscription.
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on current beliefs, expectations, and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.
The information in this article is based on a press release statement from Future FinTech Group Inc.
In other recent news, Future FinTech Group Inc. has been granted an additional 180-day grace period by the NASDAQ Listing Qualifications Staff to comply with the minimum bid price requirement. This extension, which lasts until May 2025, was given after the company expressed its intention to remedy the bid price deficit, potentially through a reverse stock split. In other developments, Raytech Holding Ltd has scheduled its 2024 annual meeting of shareholders, as disclosed in a recent filing with the United States Securities and Exchange Commission. The specific agenda items for the meeting have not been disclosed.
Future FinTech is also dealing with a legal setback, as a court has ordered the company to turn over shares in its subsidiaries to satisfy a $10.8 million judgment. This judgment is the result of a lawsuit filed by FT Global Capital, Inc., alleging breaches of their 2020 exclusive placement agent agreement. Future FinTech is actively contesting the judgment and has expressed its intention to appeal if necessary. These recent developments could significantly impact the company's financial standing and operational control over its subsidiaries.
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