Seven Stars Cloud Group, Inc. (NASDAQ: SSC), announced today a Securities Purchase Agreement with Tiger Sports Media Limited, a Hong Kong limited liability company pursuant to which the Company agreed to purchase Tiger's 20% equity ownership in BBD Digital Capital Group Ltd., a New York corporation. SSC will purchase the 20% equity from Tiger for a total purchase price of $9.8 million (consisting of $2 million in cash and $7.8 million to be paid in the form of the Company's common stock (valued at $2.60 per share and equal to 3 million shares of the Company's common stock).
As per all business matters of this nature, SSC's Audit Committee has reviewed the terms and conditions of the BBD SPA and has recommended that the Company obtain a valuation report in connection with the transaction. As requested by Company's management, the valuation report will be conducted post-signing of the BBD SPA with both parties understanding that there is no obligation to close the transaction until a satisfactory valuation report has been received, evaluated and approved.
The Company shall pay the $2 million in cash upon the full execution of the SPA and will pay the 3 million shares of SSC common stock upon full closing (post valuation report review and approval). If this transaction does not meet the closing requirements then Tiger shall refund the $2 million cash payment to SSC within 15 days of notice from the Company.
As mentioned previously, BBD Digital Capital will focus on leveraging the BBD brand with artificial intelligence-driven financial data services as well as transactional platforms for index, futures and derivative trading, for both global commodity and energy clients.
BBD is Asia's leading provider of Artificial Intelligence-based big data solutions dedicated to optimizing the efficiency and effectiveness of industrial-level decision-making and risk management, by standardizing data services. BBD Digital Services will look to capitalize on commodity and energy provider's needs for more precise risk management services, more informed operational planning and more strategic decision-making, specifically as they all relate to the trading of index, futures and commodities.
Dr. George Yuan is the Chief Risk Officer and Chief Engineer of BBD Digital Finance. With prior risk management experience at Deloitte China, KPMG LLP (USA) and TXU Energy Trading (Dallas, TX), as well as holding a professorship at the Institute of Risk Management at Tongji University, Dr Yuan's study and work has centered around the valuation of Financial Derivatives and Value-at-Risk (VaR) Modeling for Market Risk, Credit Risk and Operational Risk under the framework of Basel II (Basel III) Accord, Financial and Credit Derivatives Pricing, Portfolio Optimization, Risk Limit Design, Commodity Forward Price Curve Design, Complex Position, Commodity Price Risk Assessment and Asset Valuation.
BBD Digital Finance will be powered by Dynamic Ontology models. Dynamic Ontology has emerged as a powerful way to share common understanding, due to its ability to chain limitless amounts of knowledge, compartmentalize the variables needed for any set of computations and establish the relationships between them. BBD Digital Finance is positioned to operate a global AI + Blockchain digital issuance & trading platform of index / future derivatives. Centered on SSC's Dynamic Ontologymodel and approach, BBD Digital Finance will convert data into financial super intelligence, that intelligence to investment opportunities, and those opportunities to cash and assets through integrated digital securitization and Initial Exchange Offering financial services.
About Seven Stars Cloud Group, Inc. (http://www.sevenstarscloud.com/)