MICT, Inc. (MICT) Acquires Key License for Soon-to-Launch Stock Trading and Wealth Management Platform and Mobile App in China and Hong Kong

MICT, Inc. (Nasdaq: MICT) (“MICT” or the “Company”) today announces it has received approval from the Hong Kong SFC (Securities and Futures Commission) to complete the acquisition of Huapei Global Securities, Ltd. (“Huapei”), which provides the Company with a licensed platform to facilitate the trading of securities on the major stock exchanges in Hong Kong, the United States, and China for its Chinese and Hong Kong clientele.

As previously announced, the Company acquired a 9% stake in Huapei on October 1, 2020 with the option to acquire the remaining 91% upon the receipt of approval from the regulatory authority.1 Having gained the approval of the Hong Kong SFC, the acquisition is expected to be finalized within the next two to three weeks. The completion also enables the Company to commence final stage testing of its trading platform app in a live environment, ahead of its subsequent launch.

China is one of the largest contributors to online securities trading, with China and Hong Kong based investors accounting for around 45% of total trading volume in 2017. China’s online retail securities market has grown significantly in recent years, from $1.8 trillion in 2012 to $12.7 trillion in 2017, representing compound annual growth of 47.8%, and is expected to reach $30.3 trillion by 2022. China’s population of approximately 1.4 billion, includes more than 400 million millennials and around 325 million Generation Z, who are more likely to transact over apps and other online platforms.

The completion of the Huapei acquisition allows MICT the opportunity to attract these investors, whether through leveraging its existing client base or through the Company’s strategic marketing programs or partnerships with the big Chinese portals who recognize the value proposition for their users. In addition, the Company has recruited a seasoned management team which is experienced and well qualified to drive these customers to such online platforms.

“The acquisition of Huapei marks a pivotal event for MICT, in particular, Huapei’s licenses allow us to launch our mobile app-based equities trading platform and gains us access into the one of the world’s largest retail investment markets,” said Darren Mercer, MICT’s CEO. “We believe our platform will be competitive with other comparable offerings in China and that it possesses all of the attributes needed to quickly gain market share, including a strong balance sheet to offer margin financing; a strategic marketing plan to attract new users; relationships with major online platforms, allowing access to their user-bases; and an interface that appeals to the fast-growing Chinese online retail investor market. Based on these factors, we believe, once launched, our platform will provide a meaningful contribution to MICT's overall revenue in 2021 and beyond and deliver accretive shareholder value.”

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