AGM Group Holdings Inc. (“AGMH” or the “Company”) (NASDAQ: AGMH), an integrated technology company focusing on high-performance chip solutions, computing equipment and fintech software services, and HighSharp (Shenzhen Gaorui) Electronic Technology Co., Ltd (“HighSharp”), a renowned fabless integrated circuit designer that provides advanced semiconductor solutions for supercomputing hardware, today announced that they have entered into a definitive agreement for a strategic partnership that is expected to accelerate growths for both companies in the fast-growing global cryptocurrency markets.
This innovative partnership aligns the unique strengths and assets of AGMH and HighSharp by combining AGMH’s leading software and technical services capabilities, and HighSharp’s proven expertise as a next-generation high performance ASIC chip designer and manufacturing, in order to expand blockchain-oriented ASIC chip research and development, as well as to extend the full services of crypto mining equipment manufacturing and sales. More importantly, this long-term collaboration represents an advanced transformation for both businesses in addressing the dynamic needs of the market, as well as in creating compelling value for both companies and their respective shareholders.
Some key transaction details are listed below:
- Intellectual Property rights endorsement: for the six months period until March 25 2022, HighSharp will provide the latest ASIC chip technology and manufacturing services to AGMH as a top priority
- Product distribution: in return, AGMH will be solely responsible for client development on a global basis, with a target to generate orders in a total amount of US$100 million during the six-month term.
- Personal exchange for joint advanced R&D: If the partners achieve their respective targets, AGMH and HighSharp plan to form a Joint Venture, joined by HighSharp’s key R&D team members, with the goal to integrate next generation product research and development into fabless integrated circuit design capabilities that provides advanced semiconductor solutions for supercomputing hardware. AGMH will own 60% equity in the Joint Venture.
Mr. Chenjun Li, Chairman and Co-Chief Executive Officer of the Company, stated, “The AGMH-HighSharp partnership is a powerful combination. HighSharp’s success proven track record in complex ASIC design, its profound engineering expertise, and agile collaborative approach is uniquely complimentary to AGMH’s team, market reach, and new growth strategy. [Our recent commercial deployment of the first ASIC crypto Miner – KOI MINER C16 equipped with the C3012 chip by HighSharp, is a strong testament to our joint achievement in leveraging each other’s core competencies. We believe by transforming our collaboration into a long-term partnership model will significantly expand industry leading technology products and solutions, develop more business opportunities for our clients, as well as accelerate our future growths.”