Apollo Future Mobility Exits U.S. 3D Printing Venture Amid National Security Concerns

Apollo Future Mobility Group, a Hong Kong-listed company with Chinese backing, announced its divestment from U.S.-based Divergent Technologies, citing concerns over U.S. national security scrutiny. The sale, driven by regulatory limits on foreign ownership in defense-related firms, is expected to incur a significant loss.

Apollo Future Mobility Sells U.S. 3D Printing Stake Amid National Security Scrutiny and Regulatory Limits

A Hong Kong-listed investment company with Chinese support, Apollo Future Mobility Group, has disclosed the disposition of its stake in an American 3D printing company. The company cited concerns regarding U.S. national security scrutiny.

The company has announced that it will sell its entire 12.87% stake in Divergent Technologies in a transaction anticipated to result in a record loss of 106 million Hong Kong dollars ($13.6 million).

The 3D printing company cannot secure U.S. classified defense contracts because Apollo Future Mobility's ownership of Divergent Technologies is within the foreign ownership limit established by U.S. regulations. According to the Hong Kong-based company, Divergent Technologies has requested that Apollo Future Mobility and other foreign shareholders who exceed the limit divest.

According to Nikkei Asia, Apollo Future Mobility stated that its ownership of a U.S. military supplier may subject the company and its shareholders to potential U.S. regulatory scrutiny and penalties, citing the Chinese government's connections with its significant shareholders.

Apollo Future Mobility, previously known as WE Solutions, has received significant support from prominent Chinese mainland, Hong Kong, and Macao entrepreneurs.

Apollo Future Mobility’s Diverse Ownership and Ventures Highlight Growing Interests in EVs and Tech Innovation

Prestige Rich Holdings, an investment firm incorporated in the British Virgin Islands, holds the most significant stake in the company, with 27.79%. Freeman Shen, the founder of the Chinese electric vehicle startup WM Motor, is the second largest shareholder. The company is owned by Justin Ho King-man, a legislator in Shanghai and the son of former Macao Chief Executive Edmund Ho Hau-wah. The company's ownership is 21.78%. Shanghai Alliance Investment, a state-owned entity in China, is among the other investors.

Apollo Future Mobility's business primarily focuses on investments, but its diversification into the design, development, manufacturing, and sale of electric vehicles presents exciting opportunities. Additionally, the organization provides lending services and sells jewelry and watches, showcasing its adaptability and potential for growth.

Divergent Technologies, a Delaware-based company, is a pioneer in the development of 3D-printed structural instruments that utilize proprietary hardware and software. The company's innovative approach and ongoing efforts to obtain certification from the U.S. government for classified defense contracts make it a compelling entity to watch in the tech industry.