Lion Group Holding Ltd. (NASDAQ: LGHL), the operator of a trading platform that offers a wide spectrum of products and services, announced that it entered into a non-binding term sheet with Hong Kong Agunua Technology Co., Limited, with plans to acquire a 60% post-investment equity stake in Agunua Technology.
The investment, valued at $4.8M, will be executed using $2.88M worth of American Depositary Shares (ADS) of the company, priced at $1.2 per ADS. The closing of the deal is subject to the execution of a definitive agreement and certain closing conditions set forth in the definitive agreement.
This strategic investment marks Lion Group’s expansion in the global carbon finance market, further enhancing its core competitiveness in climate financing, green finance, transition finance, and climate AI application services.
With it, Lion will secure exclusive operating rights to the SIGX carbon credit electronic trading platform.
Agunua Technology holds the exclusive technical mandate and 50-year operating rights for an authorized carbon rights electronic trading platform in the Solomon Islands—the Solomon International Green Asset Exchange (‘SIGX’). SIGX boasts a sovereign government-backed international green exchange license and the sole system for South-South cooperation carbon account interconnectivity, making it the exclusive platform for green asset trading in South Pacific countries. The platform covers online sales, electronic order processing, electronic payment settlement, and all other activities related to electronic trading. Leveraging Asia’s technological research and development capabilities, the platform also features climate AI-based intelligent carbon emission measurement hardware, addressing issues of carbon data, carbon standards, green evaluation, and carbon asset trading interconnectivity between countries. This offers global carbon market participants an efficient, secure, and transparent trading environment.
Through this investment, Lion will secure exclusive operating rights to the SIGX carbon credit electronic trading platform. This move will enhance Lion’s efforts in building green financial infrastructure and expanding into emerging sectors focused on carbon neutrality services. By targeting key global markets, South-South cooperation countries, and the Greater China region, this move will diversify and enhance Lion’s innovative product offerings, delivering more comprehensive and specialized carbon finance solutions to the Company’s clients, and also open up substantial revenue opportunities, with SIGX’s revenue expected to surpass $200 million by 2029.
Commenting on the news, Mr. Chunning (Wilson) Wang, CEO of Lion, said: “Under the global consensus on carbon strategies, the financialization and digitalization of the carbon market are increasingly enhancing its value. Lion’s recent investment is not only a significant expansion of our business but also a strategic move that aligns perfectly with the evolving trends in the global carbon finance market. By integrating Agunua Technology’s strengths with the resource advantages of the SIGX platform, we will create a solid foundation and significant growth potential for rapid expansion in the carbon finance sector. Moreover, by leveraging cutting-edge technologies such as Web 3.0 and AI, we are confident in securing a leading position in the global carbon finance market. This will enable us to achieve new growth points and sustainable development, advance the construction of a digital financial ecosystem, and create meaningful value growth for our shareholders.”
FinSMEs
20/08/2024