ATIF Holdings Limited Enters Strategic Non-Binding Agreement
Irvine, California and Markham, Ontario — The well-known ATIF Holdings Limited (NASDAQ: ZBAI) recently announced a significant step towards growth by entering a non-binding letter of intent to acquire Mask Global Market Co. Ltd. This agreement, which highlights a prospective acquisition of 100% equity in Mask Global, showcases ZBAI's intention to issue its Class A ordinary shares as consideration for the deal.
Details of the Letter of Intent
The terms of the letter of intent indicate that ZBAI plans to proceed with acquiring all of Mask Global's issued shares. The exact allocation of ZBAI shares will hinge upon ongoing due diligence, audited financial assessments, and negotiations between both parties. It is anticipated that a definitive agreement could be finalized within a two-month window, contingent on the completion of satisfactory due diligence and the availability of audited financial statements from Mask Global.
Exclusivity and Valuation Insights
The letter of intent also encompasses a 60-day exclusivity clause, ensuring that neither ZBAI nor Mask Global engage with other parties for similar transaction proposals during this period. As part of the evaluation process, the valuation reports from Valtech, which appraised Mask Global between $450 million and $550 million, will be a critical reference point in determining final transaction considerations.
CEO Insights on the Merger
Dr. Kamran Khan, the CEO of ZBAI, expressed his enthusiasm about reaching this strategic agreement, noting, "This acquisition reflects our ambitions to enhance our market presence, particularly within the Web2 and Web3 sectors." ZBAI aims to capitalize on the strengths of both entities, signaling a fruitful collaboration ahead.
Operational Synergies Expected
The merger is projected to bolster ZBAI's global footprint, notably in the rapidly evolving Web2 and Web3 domains where Mask Global operates. The integration of ZBAI’s established capital market platform with the operational prowess of Mask Global is anticipated to foster expansive growth into these emerging markets.
Statements from Leadership
Haibo Dong, CEO of Mask Global, emphasized the potential benefits of this merger, highlighting that it could provide essential development opportunities and capital support to expedite their global strategy. This partnership is seen as a significant move towards growing Mask Global's operational capabilities and service offerings.
Future Steps and Closing Conditions
While this letter of intent marks an exciting milestone, it is crucial to note that the transaction is still subject to further due diligence and the finalization of definitive agreements. The completion of this significant deal hinges upon various factors, including successful negotiations and regulatory approvals.
About Mask Global
Mask Global is dedicated to bridging the gap between Web2 and Web3 environments through its cryptocurrency exchange initiatives. The company focuses on developing a user-friendly super app and secure wallet services aimed at simplifying access to diverse payment and wealth management solutions for new users in the Web3 landscape.
About ATIF Holdings Limited
ATIF Holdings Limited (NASDAQ: ZBAI) specializes in offering business consulting services that encompass IPO, mergers and acquisitions advisory, and post-IPO compliance for small to medium-sized enterprises aspiring to enter public markets in the United States. Currently, ZBAI is exploring various business avenues, particularly focusing on the BTC sector.
Frequently Asked Questions
What is the purpose of the LOI between ATIF and Mask Global?
The LOI outlines the intention for ATIF Holdings Limited to acquire Mask Global, aiming to enhance both companies' market positions.
What are the expected benefits of this merger?
The merger is anticipated to improve market presence and operational capabilities in the Web2 and Web3 sectors for both companies.
What is the estimated valuation of Mask Global?
The valuation of Mask Global is stated to be between $450 million and $550 million, as per independent evaluations.
When is the definitive agreement expected to be finalized?
A definitive agreement is expected to be reached within 60 days, pending satisfactory due diligence and available financial statements.
Who can be contacted for more information?
For more information, individuals can reach out to Christina at Christina@zbai.co.
