Ideanomics Enters into 50/50 JV with BBD to Establish an Inv
NEW YORK, June 5, 2020 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company") is pleased to announce that it has entered into a 50/50 joint venture (JV) with Business Big Data PTE, Ltd./Seasail Ventures (BBD) to create an investment company focused on new infrastructure projects in China. The investment company will develop an AI-enhanced China New Infrastructure bond product, introduce capital, and fund advisory. The investment company will utilize BBD's leading AI intelligence technology to provide risk management and selection models for equity and fixed-income products. Its bond product will be the first fund of its kind that enables investors to access value in China's new infrastructure growth. The seven key development areas for new infrastructure construction are: 5G, UHV, intercity highways and intercity rail transit, new energy vehicle charging stations, big data centers, artificial intelligence, and the industrial Internet.
The joint venture company has plans to create an offshore fund that invests in Chinese bonds and equities that are focused on the New Infrastructure initiative. It will be the first of its kind to take advantage of cross border financial market opportunities and AI. This fund will capture two significant emerging trends: the application of AI in traditional financial services and China's next economic upturn.
BBD is Asia's leading provider of AI-based big data solutions dedicated to optimizing the efficiency and effectiveness of industrial-level decision-making and risk management. It's products specialize in financial services, ranging from loan underwriting to portfolio management. BBD will use its AI platform to provide and execute services for the "intelligent" bond and stock risk control and investment decision-making for the joint venture company, including but not limited to: designing and maintaining a passive investment index that can be used as an investment reference benchmark for overseas ETFs and provide intelligent investment decision aid and intelligent risk management services.
Ideanomics anticipates its interest in ETF activities will be transferred to this JV entity in the effort to focus on the main business in the MEG Division. As previously communicated, Ideanomics continues to streamline its operations and expects to announce divestures of its non-core businesses throughout the year.
Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech products. Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. Ideanomics Capital includes DBOT ATS and Intelligenta which provide innovative financial services solutions powered by AI and blockchain. MEG and Ideanomics Capital provide our global customers and partners with better efficiencies and technologies and greater access to global markets.
The company is headquartered in New York, NY, and has offices in Beijing and Qingdao, China.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties, and include statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; and other risks and uncertainties disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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