U.S. Markets closed
  • S&P Futures

    4,700.50
    +1.50 (+0.03%)
     
  • Dow Futures

    35,755.00
    +9.00 (+0.03%)
     
  • Nasdaq Futures

    16,401.25
    +9.00 (+0.05%)
     
  • Russell 2000 Futures

    2,271.10
    +1.30 (+0.06%)
     
  • Crude Oil

    72.83
    +0.47 (+0.65%)
     
  • Gold

    1,783.40
    -2.10 (-0.12%)
     
  • Silver

    22.36
    -0.07 (-0.32%)
     
  • EUR/USD

    1.1337
    -0.0008 (-0.0680%)
     
  • 10-Yr Bond

    1.5090
    +0.0290 (+1.96%)
     
  • Vix

    19.90
    -1.99 (-9.09%)
     
  • GBP/USD

    1.3200
    -0.0007 (-0.0502%)
     
  • USD/JPY

    113.7440
    +0.0070 (+0.0062%)
     
  • BTC-USD

    49,946.98
    -659.07 (-1.30%)
     
  • CMC Crypto 200

    1,307.43
    +2.32 (+0.18%)
     
  • FTSE 100

    7,337.05
    -2.85 (-0.04%)
     
  • Nikkei 225

    28,815.66
    -44.96 (-0.16%)
     

Lion Signs Letter of Intent with New Full Rich to Invest in Tajikistan's Digital Mining Project

  • Oops!
    Something went wrong.
    Please try again later.
·6 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

HONG KONG, Nov. 18, 2021 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services and developer of new growth products that include SPAC sponsorship, NFT, and metaverse-related initiatives, today announced it signed a letter of intent with Hong Kong New Full Rich Ltd. ("New Full Rich"). Under this investment agreement, the two parties will cooperate to construct and operate an encrypted digital currency mine project ("the Project") in Tajikistan through Ganj Technology (the "Target Company"), a company owned by New Full Rich.

New Full Rich specializes in the construction, development and operation of overseas digital mines and digital mining business. The Target Company has received strong support from Tajikistan's government, including the President's Office and 12 government departments. The first phase of the Project will focus on a free trade economic zone, establishing a 150,000-load mining site that incorporates industry licenses, energy loads, electricity prices and other relevant operating conditions, in addition to signing a sole protection agreement with the free trade economic development zone. The first phase of construction for the digital mine infrastructure and power-on operation is expected to be completed in the first quarter of 2022, and the project's annual profit is expected to be no less than US$25 million. In addition, the two groups will gradually promote the construction of a 300,000-load mine field for the second phase of the Project.

Accordant to the agreement, Lion Group will issue 5,000,000 shares to New Full Rich at a price of US$3.00 per share in exchange for 20% of the Target Company's enlarged shares. Lion will work closely to execute the Project and expects to achieve profit sharing of US$5 million in 2022. In addition, Lion can exercise priority to purchase 10,000 WhatsMiner M series mining machines from New Full Rich with operational hashing power ranging from 60 to 62 terahashes per second. Upon installation and initial use of the mining machines, Lion expects to generate an estimate of approximately 3.38 BTC per day. According to the current price of cryptocurrency, daily income will be approximately US$220,000. After deducting 22% for electricity fees and subsequent machine maintenance costs, annual profit is expected to reach US$62 million with attractive return-on-investment in the long-term if operations go as expected.

Mr. Chunning (Wilson) Wang, CEO of Lion, commented: "Tajikistan has unique advantages in water resources, which is central to the development of the digital mining industry. Through this project with New Full Rich, Lion's investment and operations in digital mining in Central Asia will create valuable achievements and mark another solid step for Lion in the global digital asset industry. As the era of the digital economy continues to expand, we believe there is huge growth potential in the cryptocurrency market. Following this trend and seizing the opportunity, Lion will accelerate development and innovation in the global digital asset field as we continue to create meaningful value for our shareholders."

About Lion

Lion Group Holding Ltd. (Nasdaq: LGHL) operates an all-in one, state-of-the-art trading platform that offer a wide spectrum of products and services, including (i) total return service (TRS) trading, (ii) contract-for-difference (CFD) trading, (iii) insurance brokerage, and (iv) futures and securities brokerage. In addition, Lion owns a professional and experienced SPAC sponsorship team to become a leader in the SPAC arena, helping guide private companies through their listing journey while creating value for Lion itself. Lion is also fully committed to building the world's top one-stop, cross-chain, high-expansion non-fungible token (NFT) marketplace and entering metaverse space through blockchain technology. Additional information may be found at http://ir.liongrouphl.com.

Forward-Looking Statements

This press release contains, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Lion's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Lion's expectations with respect to future performance and anticipated financial impacts of the Business combination, the satisfaction of the closing conditions to the business combination and the timing of the completion of the business combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of Lion and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to maintain the listing of the post-acquisition company's ADSs on NASDAQ following the business combination; (2) the risk that the business combination disrupts current plans and operations as a result of the announcement and consummation of the transactions described herein; (3) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably and retain its key employees; (4) costs related to the business combination; (5) changes in applicable laws or regulations; (6) the possibility that Lion may be adversely affected by other economic, business, and/or competitive factors; and (7) other risks and uncertainties to be identified in the proxy statement/prospectus relating to the business combination, including those under "Risk Factors" therein, and in other filings with the Securities and Exchange Commission ("SEC") made by Lion. Lion cautions that the foregoing list of factors is not exclusive. Lion cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Lion does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law.

Contact

Lion Group Holding
Tel: +852 2820 9011
Email: ir@liongrouphl.com

ICR, LLC
William Zima
Tel: +1 203 682 8233
Email: ir@liongrouphl.com

Cision
Cision

View original content:https://www.prnewswire.com/news-releases/lion-signs-letter-of-intent-with-new-full-rich-to-invest-in-tajikistans-digital-mining-project-301427590.html

SOURCE Lion Group Holding Ltd.