Acquisition of Guangzhou City Hedu Information Technology Co., Ltd
Technovative Group, Inc. Shifts Focus in Fintech and Blockchain Service Provider - Announces Acquisition of Guangzhou City Hedu Information Technology Co., Ltd
HONG KONG, CHINA, Jan. 03, 2018 (GLOBE NEWSWIRE) -- Technovative Group, Inc. ("Technovative" or the "Company") (OTCPINK: TEHG), a technology company focused in delivering financial technology, blockchain and big data analytics technologies, announced that on December 27, 2017, the Company has entered into a Share Transfer Agreement with several individuals who are shareholders of Guangzhou City Hedu Information Technology Co., Ltd. (“Hedu”), a PRC incorporate company, in exchange for entering into a certain loan agreement and entering into a series of contractual arrangements (the “VIE Agreements”) whereby Hedu shall become a Variable Interest Entity (“VIE”) of the Company.
Pursuant to the Share Transfer Agreement, the Company has agreed to issue to the Shareholders in the aggregate, up to 41,815,880 shares of the Company’s common stock as an inducement for the shareholders of Hedu to enter into the VIE and the loan agreement, pursuant to which Technovative, through its wholly-owned foreign entity, shall control all of Hedu’s business affairs and economic interests (the “Transaction”).
Hedu is a company specializing in blockchain and big data analytics technologies. Currently, Hedu provides services to Financial Service Institutions (“FSI”) in the Greater China region. Hedu is currently developing a suite of smart tools known as Hedu SmartSuite, with its flagship SmartBot, an artificial intelligence powered financial technology chatbot for FSI. Hedu SmartSuite will also include: SmartCon, SmartAlytics, SmartTrader and SmartWallet. Technovative will be highly focused on Hedu in order to develop and grow the overall, outstanding, Hedu business.
Nicolas Lin, Chief Executive Officer of Technovative, commented, “Following our consolidation of the Hedu business with Technovative, we are pleased to add on Hedu and its management team into our overall infrastructure. The shift in focus within the fintech space in the Greater China region allows us to compete with other major players in the region. The Company previously focused on smaller markets but did not achieve positive results, however, we are confident with this consolidation of Hedu and with new add-ons to the management team, we are creating tremendous opportunities for the future growth of the business and creating intrinsic value for our shareholders. We are excited and thrilled for 2018 and look forward to being the Company of the future.”