Mmtec, Inc. (MTC) has seen an increase of 8.53% in the aftermarket. However, the last trading session closed at $0.783 with a decrease of 4.51%.
MTC is based in Beijing, China, that develops and deploys a set of platforms that form a business chain that allows Chinese language-speaking hedge funds, investment companies, registered investment companies, buying and selling groups, and broker-dealers to participate in the global securities market transactions and settlements. In 2020, the company formed a series of MOM funds with the help of a domestically built and designed system, a US brokerage license, and a Cayman wealth management certification, with the primary goal of finding small and medium-sized institutional investors and assisting them in setting up the finance to issue securities fund products.
Agreement for a $2.0 million Private Placement – What’s happening?
On 20th December 2021, MTC announced that it had signed a Securities Purchase Agreement with a single investor under which the Investor will make a $2.0 million Regulation S private equity position in the Business. Moreover, the Investor will buy 5,000,000 common shares of the Company at a price of $0.40 per share. The deal is scheduled to close on or around December 30, 2021, after the fulfillment of the transaction’s usual closing conditions is fulfilled. The net proceeds from this acquisition will be used for expansion capital and basic working capital by the Company.
The half Year 2021 Results – Latest News
MTC announced half-year 2021 results on 30th September 2021. The company reported that the net revenues climbed high by 54.09% and the gross profit increased by 36.67%. Not only this but the company had to experience losses from operations that were about $1,835,262. Finally, the net loss came out to be $2,367,612. In terms of the Company’s future plan, it is pursuing a Hong Kong securities broker license in order to provide services for Hong Kong customers such as securities trading, investment counseling, and asset management. Last but not the least, due to the Chinese government restrictions for cross-border data security oversight, the Company will gradually diminish its retail activity.