Nova LifeStyle Announces Closing of Share Transfer Agreement to Sell its China-Based Subsidiaries to Kuka Design Limited
26 Oktober 2016 - 1:45PM
Nova LifeStyle, Inc. (NASDAQ:NVFY) (“Nova
LifeStyle” or the “Company”), a U.S.-based, leading innovative
designer, manufacturer and distributor of modern life style
furniture, today announced it has closed its previously announced
Share Transfer Agreement (“Agreement”) with Kuka Design Limited, a
company incorporated in BVI (“Kuka BVI”) to sell NOVA BVI and its
subsidiaries, which consists of the Company’s manufacturing
operations in mainland China (the “Transaction”).
With the slow-down of the Chinese economy and a
significant increase in labor and other costs for manufacturing
facilities in China, the Company decided to sell NOVA BVI,
allowing the Company to transition to a “light-asset” business
model with greater flexibility and scalability while also focusing
its operations on designing, developing, branding, marketing and
distributing furniture products in North America, Asia and around
the world.
Management CommentaryMs. Tawny
Lam, President, and Interim CEO, stated, "We are pleased to have
closed our previously announced sale of our China-based business
assets. We are now looking forward to focusing our entire
attention on designing, branding, marketing and distribution of
furnishing products in North America, and developing the Company’s
fast growing e-commerce segment.”
Transaction DetailsUnder the
Agreement, Kuka Design BVI has purchased from the Company all of
the issued and outstanding shares of NOVA BVI and the subsidiaries
owned by NOVA BVI - Nova Furniture (Dongguan) Co., Ltd., Nova
Dongguan Chinese Style Furniture Museum and Dongguan Ding Nuo
Household Products Co., Ltd., which include all their assets and
liabilities, for $8,500,000.
About Nova LifeStyleNova
LifeStyle, Inc., a NASDAQ Global Markets Exchange listed company
headquartered in California, is a fast growing, innovative
designer, manufacturer and distributor of modern LifeStyle
furniture; primarily sofas, dining rooms, cabinets, office
furniture and related components, bedrooms, and various accessories
in matching collections. Nova's products include LifeStyle brands
such as Diamond Sofa, Colorful World, Giorgio Mobili, Nova QwiK,
and Bright Swallow International. Nova's products feature urban
contemporary styles that integrate comfort and functionality
incorporating upscale luxury designs appealing to
LifeStyle-conscious middle and upper middle-income consumers in the
U.S., Asia, Europe, and elsewhere in the world.
To learn more about Nova LifeStyle, Inc., please
visit our website at www.NovaLifeStyle.com
Safe Harbor StatementAll
statements in this press release that are not historical are
forward-looking statements made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
There can be no assurance that actual results will not differ from
the Company's expectations. You are cautioned not to place undue
reliance on any forward-looking statements in this press release as
they reflect Nova's current expectations with respect to future
events and are subject to risks and uncertainties that may cause
actual results to differ materially from those contemplated.
Potential risks and uncertainties include, but are not limited to,
the risks described in Nova's filings with the Securities and
Exchange Commission.
Company Contact:
INVESTOR RELATIONS:
The Equity Group Inc.
In U.S.
Adam Prior, Senior Vice President
+1 (212) 836-9606
aprior@equityny.com
In China
Katherine Yao, Senior Associate
+86-10-6587-6435
kyao@equityny.com
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