Cosmos Group Holdings Transformation: Focusing on the revenue generation in pursuit of sustainable growth
SINGAPORE, Dec. 27, 2022 /PRNewswire/ — Cosmos Group Holdings Inc. (OTC: COSG) has entered into a Settlement Agreement with Lee Ying Chiu, Herbert (“Dr. Lee”) effective 15 December 2022, pursuant to which the Company and Dr. Lee agreed to settle the matter of 800,000,000 shares of common stock of the Company due to Dr. Lee pursuant to the terms of the Share Exchange Agreement dated June 17, 2021 in the acquisition of Massive Treasure Limited.
Pursuant to the settlement:
1. The Company will issue 400,000,000 shares of common stock to Dr. Lee in lieu of the original amount of 800,000,000 shares of common stock.
2. All DOT (based on NFT) technology development entities will be transferred to Dr. Lee or his designees.
Commenting on the settlement agreement, Dr. Chan Man Chung, Chief Executive Officer of Cosmos Group Holdings Inc. said, “We are delighted at the outcome of this settlement and we believe that the COSG Group will be in a much better position as a result of this. If you take a look at our last quarter financial report, with more than US$8 million DOT sales within the first 9 months of 2022, the DOT business was actually growing very strongly. However, our management team also reviewed the overall financial position of the COSG Group and felt the technology and business development costs that we have and will need to continue to put into the DOT business will continue to be high, which will continue to affect the profitability of the company. In addition, the overall Crypto Winter gave us an opportunity to reassess our overall business model and market situation, and we believe that this settlement and changes will ensure that COSG keeps adding value to shareholders.”
On COSG’s long term direction, Dr. Chan commented, “From COSG’s perspective, this settlement allows us to be more focus with our lending business unit, which has been maintaining a healthy profitable business unit. During the first 9 months of 2022, although the overall economy condition is still suffering from the pandemic, our lending business reported US$4,833,433 in revenue with US$1,033,902 in profits. In addition, we still continue to build up our arts and collectibles business, which we always believe have a synergy with our lending business. If you have been following our announcements, you will know that we have recently appointed a new CEO – Terry Lee, who is a renowned thought leader in art and collectibles space. If there is any difference, it will simply be how Coinllectibles position itself. Ultimately, we want to move beyond just our digital ownership tokens (DOTs) to pursue more sustainable growth.”
For more information on Coinllectibles, please visit www.Coinllectibles.Art.
Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “look forward to,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions. These forward-looking statements may include, but are not limited to, statements regarding future business activities including the expansion into the decentralized financing space. These forward-looking statements are not promises or guarantees and involve substantial risks and uncertainties. Among the factors that could cause actual results to differ materially from those described or projected herein include uncertainties associated with operating a business in Singapore and Hong Kong, risk of interference by the PRC government, ability to compete, that financial resources do not last for as long as anticipated, and that COSG is a holding company that may not realize the expected benefits of DOT’s offered by Coinllectibles™️. A further list and description of these risks, uncertainties and other risks can be found in COSG’s regulatory filings with the U.S. Securities and Exchange Commission, including in its annual report on Form 10-K filed on April 15, 2022. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. COSG undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.
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About Cosmos Group Holdings Inc
Cosmos is a business group that operates in two business segments:
- Arts and Collectibles
Through Coinllectibles™, the group provides authentication, valuation and certification (AVC) service, sale and purchase, hire purchase, financing, custody, security and exhibition (CSE) services to art buyers through traditional channels, as well as through leveraging blockchain technology through the application of digital ownership tokens (DOTs) from affiliated provider. With subsidiaries licensed under Hong Kong’s Money Lenders Ordinance, the group currently primarily provides unsecured personal loan to private individuals, with a small portfolio of mortgage loans. The group is integrating the two business segments by offering secured financing services to prospective art and collectibles purchasers to provide a one-stop arts and collectibles purchasing and financing experience.
SOURCE Cosmos Group Holdings Inc.