The tech firm makes changes in senior management followed by a strategic partnership with HighSharp Electronic Technology Co. Ltd. AGM Group Holdings (AGMH) shares drop amid the current strategic events.
AGM Group Holdings Inc. (AGMH) stock is trading on the lower side as the company makes some key decisions. As of September 28, 2021, AGMH has dropped nearly 16% from the last day’s closing price – at the time of press.
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The tech company has appointed Mr. Steven Yuan Ning Sim as the new Chief Financial Officer (CFO) of the Company, effective September 24, 2021. The appointment of the new CFO is followed by the resignation of the former CFO, Mr. Zhihe Yang.
AGM mentioned that the resignation of Mr. Yang was not in consequence of any disagreement with the Company’s operations, policies, or procedures.
Recently, AGM Group Holdings entered into a strategic collaboration with HighSharp (Shenzhen Gaorui) Electronic Technology (HighSharp), a renowned fabless integrated circuit designer that offers advanced semiconductor solutions for supercomputing hardware. Both the companies have signed a definitive agreement to enhance the growth of AGM and HighSharp in the fast-growing international cryptocurrency markets.
This collaboration will work in combination with the unique strengths and assets of both firms. AGMH’s leading software and technical services will work hand-to-hand with HighSharp’s proven expertise as a next-generation high-performance ASIC chip designer. The main objective is to expand the blockchain ASIC chip research and development, along with progressing in crypto mining equipment manufacturing.
As per the agreement, in the first six months of the deal, until 25 March 2022, HighSharp will offer its ASIC chip technology and manufacturing services to AGMH. Whereas, AGMH will work on the client development across the global stage and will target to reach deals worth an aggregate of $100 million in this six-month period. Therefore, it is a win-win situation for both companies.
If AGMH and HighSharp are able to achieve their initial goal in the first six months then both the enterprises can form a Joint Venture. The next target will be to integrate intense RnD into fabless integrated circuit design capabilities. In the Joint Venture, AGMH will own almost 60% equity.
This long-term partnership seems to be a nice deal and will help in transforming their ecosystem. Moreover, both the companies will expand their tech products and work on new solutions, which will create more business opportunities for the clients.
AGM Group Holdings Inc. (AGMH) believes that this deal adds value for both companies and their respective shareholders. However, investors might be sceptical about this deal for now. Once the partnership gets into operation, then we would potentially see the long-term prospect of AGM.