LOS ANGELES, Feb. 22, 2021 /PRNewswire/ -- ATIF Holdings Limited (Nasdaq: ATIF, the "Group" or "ATIF" ), a holding group providing business and financial consulting in Asia and North America, has established a Special Purpose Acquisition Company ("SPAC") Department (the "Department") and is planning to establish a SPAC in the roles of founder, management team and sponsor. The SPAC will fundraise through initial public offering, then to identify private company with high growth potential as acquisition target. The Group expects to generate substantial returns for its shareholders by establishing SPACs and to fundraise to acquire companies with high growth potential.
SPACs have become a huge hit among U.S. capital market because it enables companies that meet the listing requirements to go public very quickly. The target company will become a public company after the completion of the SPAC acquisition, and that save the target company a lot of tedious procedures in traditional IPO. Acquisition process may be completed as fast as within a few months.
In 2020, SPACs made up most of the growth in the U.S. IPO market compared with the year 2019. According to data from spacresearch.com, SPACs have raised US$83.4 billion in gross proceeds from 248 counts, surpassing the record US$13.6 billion raised in 2019 from 59 counts, representing a 513% and 320% year-over-year increase, respectively. To date in 2021, SPACs have raised US$50.1 billion by 160 SPACs.
ATIF has extensive experience in IPO advisory services and a thorough understanding of business in various high-growth industries, and has provided IPO advisory services to a number of companies in both the U.S. and China. The Group has signed several going public consulting agreements in 2020 with an impressive track record. Qilian International Holding Group Limited (Nasdaq: QLI, "Qilian"), an IPO client advised by ATIF, made a strong debut in its U.S. IPO on January 12, 2021, closing up 100% on its first day of trading, with a market capitalization of $350 million. Qilian's price jumped 340% during the day. Qilian is a China-based pharmaceutical and chemical products manufacturer.
Members of the Department have extensive private equity, IPO and M&A experience and are currently preparing and discussing with various senior angel investors and private equity funds in relation to collaboration and sponsorship of SPACs.
The SPAC trend has spread across the globe, with several Asian companies targeted for acquisition. The Group offers excellent resources to identify highly innovative and promising companies in China and the United States.
About ATIF Holdings Limited
Headquartered in Los Angeles, California, ATIF Holdings Limited ("ATIF") is a holding group with asset management, investment holding and online financial information business and provide business consulting services to small and medium-sized enterprises in Asia and North America. ATIF operates an internet-based financial information service platform IPOEX.com, which provides prestige membership services including market information, pre-IPO education, IR media and matchmaking services between SMEs and financing institutions. ATIF's investment holding business is to provide going public consulting, M&A consulting and financial consulting services to SMEs. ATIF has advised several enterprises in China in their plans to become publicly listed in the U.S. ATIF plans to launch securities investment service and investment advisory in Q1 2021. For more information, please visit https://ir.atifchina.com/.
Forward-Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantee of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; ability to manage growth and expansion; current and future economic and political conditions; ability to compete in an industry with low barriers to entry; ability to continue to operate through our VIE structure; ability to obtain additional financing in the future to fund capital expenditures; ability to attract new clients and further enhance brand recognition; ability to hire and retain qualified management personnel and key employees; trends and competition in the financial consulting services industry; a pandemic or epidemic; and other factors listed in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. These forward-looking statements are made as of the date of this news release.
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