Hudson Capital Divests its Chinese Operations
Apr 1, 2022 By MarketDepth
Hudson Capital Inc. (NASDAQ: HUSN) today announced that it had sold its wholly-owned subsidiary, Hong Kong Internet Financial Services (HKIFS), to private investors on March 30th.
Shares Up Premarket
Shares of Hudson Capital Inc. (NASDAQ: HUSN) surged 31% in premarket trading following the announcement.
Focusing on U.S Business
The move comes as Hudson Capital looks to prioritize its U.S. footprint and cut back on non-core operations.
“As we focus more on our core business as a transportation logistics technology platform company and on improving operations, we decided it would be prudent to divest from any non-core, non-performing businesses. With the sale of HJIFS, our operations are 100% based in North America, creating room for long-term growth in our target markets.”Javier Selgas, CEO of Hudson Capital and Freight App, Inc.
The sale of HKIFS will result in Hudson Capital departing from its legacy PRC financial advisory business and the Company expects immaterial financial effects from the sale outside of incurring minimal legal expenses to assemble and formalize the transaction.