Future FinTech Group Inc (FTFT)

[finesand]

Restructuring Game Over for US Investors

The restructuring filings mentions:

The Company does not currently intend to list the ordinary shares of SkyPeople BVI or FullMart on any exchange in the United States.

Bottom line is:
- FTFT shareholder will received shares of the spin off companies
- Spin offs will not be tradable in the US, but they try to list them on a Chinese exchange. Relieve?
- Spin offs food and fruit companies hold most (90%?) equity value (assets and debts), hence remaining fintech company's MCAP will be reduced accordingly.

US holders would then need to open an account in China to trade their spin off shares if they become (ever) listed there.

Another little detailed risk mentioned in the restructuring is the potential NASDAQ delisting of FTFT due to compliance violation:
- $1 min bid price
- $2.5M min equity value
- Maybe even: Loss or change of core business

Now .. that is a bomb!
But I am sure, the owners are quite happy taking their value dark .. or private.

Timing Details:
- 10/27 last chance to buy to be on record
- 10/30 Ex-Divi Value Adjustment
- 10/31 record date
- 12/18 Vote

On Ex-Divi date the value of spin offs will be subtracted from the FTFT MCAP like having a special dividend. Cut off at least 90% here!

On 12/18 the vote will be performed, knowing that the majority is being held by insiders/owners - it is a sure yes.

It would be a fun game though, if majority owners vote no, while having bought all the dumped shares on the market - a cynical alternative play :)

Settlement T+2, Ex-Divi T+2-1
Ex-Dividend Date in the US