China Rapid Finance announces completion of asset injection with YBT/ SOS

Source: IBS Intelligence 2020-05-20

China Rapid Finance (XRF) announced the closing of the asset injection and private placement transactions on May 15, 2020. Upon closing of the transactions, Yong Bao Two (YBT), a holding company that controls SOS Information Technology (SOS) via contractual arrangements now becomes a wholly owned subsidiary of China Rapid Finance.

YBT, through its consolidated subsidiaries, is a significant player in the emergency rescue business providing emergency healthcare services, emergency roadside assistance, emergency living assistance, and other rescue services in China. China Rapid Finance’s FinTech business will drive cross-sell opportunities and leverage funding sources from SOS’ portfolio. XRF now has significant growth potential with the combination of SOS’ emergency rescue services and its FinTech services’ member base, which is said to represent over 55 million members combined.

Yandai Wang, CEO, SOS, has been appointed as the Executive Chairman and CEO of China Rapid Finance. Wang has over 20 years of industrial experience in emergency rescue, telecom and call centre services.

Douglas Brown, an independent director of the China Rapid Finance, Founder of DLB Capital and former Vice Chairman-Investment Banking at Morgan Stanley, has been appointed as the Non-Executive Chairman of the Board.

The XRF Board has also appointed 2 new independent directors nominated by YBT. Jonathan Zhang serves as the Chairman of 5C Group International Asset Management, and Wenbin Wu serves as the Chairman of Shenzhen Rongde Investments and Shenzhen Rongde Enterprise Management Advisory Company. Both new directors will join the company’s Audit and Compensation Committees. This brings the company’s board to 7 members, 3 of whom are independent directors. The company will be holding an investor call to introduce the new management and discuss strategic plans and expectations.

China Rapid Finance announces completion of asset injection with YBT/ SOS

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