ROSLYN, N.Y., Sept. 21, 2021 /PRNewswire/ -- Sino-Global
Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global" or the
"Company") today announced it has restructured its March 2, 2021 agreement with Hebei Yanghuai
Technology Co., Ltd. ("Yanghuai") to buy 2,783 digital currency
mining servers from Yanghuai. The deal was part of Sino-Global's
expansion into the cryptocurrency market.
While the original deal was closed following a successful
inspection of the digital currency operation servers for
uniqueness, health and ownership, a subsequent change in Chinese
regulatory policy prevented Yanghuai from operating the servers as
needed to meet agreed upon performance targets. As a result, the
companies have restructured the original agreement to reduce the
purchase price from RMB 30 million to
RMB 6 million and to allocate the
purchased mining equipment between Sino-Global and Yanghuai.
Revenue generated to date by the digital currency mining servers
will be recognized by Sino-Global, as per the agreement. Yanghuai
has agreed to transport digital currency mining servers
representing half of the agreed 50,440 t/s in computing power (or a
total of 25,220 t/s in computing power), to Sino-Global's office in
Ningbo, China. The equipment will
then be transported to Sino-Global in the U.S. The companies will
have no further financial or operating obligations to each other
after completion of the transfer.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, commented,
"We appreciate Yanghuai's efforts to come to a fair resolution of
the original agreement given the macro policy change. The
restructured agreement will allow us to significantly expand our
capacity in the U.S., which we intend to grow further both
organically and through additional M&A opportunities if they
meet our valuation, performance and location criteria. Separately,
we plan to switch to a direct mining business rather than
contracting with third parties in order to have greater control
over this growth segment and to optimize our gross margin."
All devices have unique QR codes enabling qualified uniqueness
acceptance. The agreement stipulates a one-year warranty period
covering the operational health and performance of the digital
currency operation servers.
About Sino-Global Shipping America, Ltd. (NASDAQ:
SINO)
Founded in the United States in
2001, Sino-Global Shipping America, Ltd. has been diversifying into
the fast growing cryptocurrency market, while continuing to support
and grow its shipping, chartering, logistics and related services
business. Headquartered in New
York, Sino-Global has offices in Los Angeles, Mainland China, Australia, Canada and Hong
Kong. Additional information about Sino-Global can be found
on the Company's corporate website at www.sino-global.net.
Forward-Looking Statements
Certain statements made herein are "forward-looking statements"
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate", "believe", "expect", "estimate", "plan", "outlook",
and "project" and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. Such forward-looking statements include SINO's
estimated and future results of operations, business strategies,
competitive position, industry environment and potential growth
opportunities. In addition, there is uncertainty about the spread
of the COVID-19 virus and the impact it will have on SINO's
operations, the demand for SINO's products and services, global
supply chains and economic activity in general. Moreover, the value
of cryptocurrencies may fluctuate significantly over time. These
forward-looking statements reflect the current analysis of existing
information and are subject to various risks and uncertainties. As
a result, caution must be exercised in relying on forward-looking
statements. Due to known and unknown risks, our actual results may
differ materially from our expectations or projections. All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
statements.
Additional information concerning these and other factors that
may impact our expectations and projections will be found in our
periodic filings with the SEC, including our Annual Report on Form
10-K for the fiscal year ended June 30,
2020. SINO's SEC filings are available publicly on the SEC's
website at www.sec.gov. SINO disclaims any obligation to
update the forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE Sino-Global Shipping America, Ltd.