BEIJING, Feb. 27, 2017 /PRNewswire/ -- VisionChina Media
Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN),
China's largest out-of-home
digital television and advertising network on mass transportation
systems and the leading provider of urban mass transit Wi-Fi, today
announced that it has reached an agreement (the "Termination
Agreement") with Ledman Optoelectronic Co., Ltd. ("Ledman") to
terminate the equity transfer agreement (the "Equity Transfer
Agreement") relating to 49% equity interest in VisionChina New
Culture Media Co., Ltd. ("New Culture"), a company that operates
mobile TV advertising business on subway. The termination was due
to the parties' disagreement over the operating management
philosophy for New Culture.
Pursuant to the Equity Transfer Agreement, the Company
previously received transaction proceeds of RMB61.0 million in cash and RMB321.2 million in the form of 17,085,100 shares
of Ledman, valued at RMB18.8 per
share and representing 4.88% of total outstanding shares of Ledman.
Pursuant to the Termination Agreement, the Company will regain the
49% equity interest in New Culture from Ledman. In return, the
Company will repay Ledman the RMB61.0
million cash consideration, with interest equivalent to that
earned in a bank deposit for the same duration, in three
installments, with the last installment to be made by August 31, 2017. In addition, the Company will
repay RMB321.2 million in cash over
the next three years by selling the 17,085,100 shares of Ledman,
which have been pledged as collateral for the Company's obligations
under the Termination Agreement. If the cash proceeds of selling
shares exceed RMB321.2 million, the
Company shall share 50% of the exceeding amount with Ledman.
The Company is actively seeking potential purchasers of such
equity interest. The Company is also exploring other ways to
improve its liquidity position.
For further details of the Termination Agreement, please refer
to public announcements made by Ledman, which are available at
www.szse.cn, the official website of the Shenzhen Stock
Exchange.
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home
advertising network on mass transportation systems, including buses
and subways. As of September 30,
2016, VisionChina Media's advertising network included
approximately 58,365 digital television displays on mass
transportation systems in 14 of China's economically prosperous cities,
including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency
agreements or joint venture contract. VisionChina Media has the
ability to deliver real-time, location-specific broadcasting,
including news, stock quotes, weather and traffic reports, and
other entertainment programming.
In addition, VisionChina Media, through its consolidated
affiliate Qianhai Mobile, has secured exclusive concession rights
for bus Wi-Fi services in 25 cities across China, including Shanghai, Shenzhen, Guangzhou and Tianjin, covering approximately 80,000 buses.
Currently, Qianhai Mobile provides free Wi-Fi Internet services on
over 35,000 buses under the brand name "VIFI," spanning over 15
million commuters and providing over 6 million Wi-Fi service
sessions per day.
For more information, please visit
http://www.visionchina.cn.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terminology such as "will", "expects", "anticipates", "future",
"intends", "plans", "believes", "estimates" and similar statements.
Among other things, the quotations from management in this press
release contain forward-looking statements. Such statements involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
Further information regarding these and other risks is included in
the Company's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form F-1 and
its annual report on Form 20-F. The Company does not undertake any
obligation to update any forward-looking statement as a result of
new information, future events or otherwise, except as required
under applicable law.
For investor and media inquiries, please contact:
In China:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86 134-2090-9426
E-mail: shuning.yi@visionchina.cn
Mr. Ross Warner
The Piacente Group, Inc.
Tel: +86 (10) 5730-6200
E-mail: visionchina@tpg-ir.com
In the United
States:
Mr. Alan
Wang
The Piacente Group, Inc.
Tel: +1 212-481-2050
E-mail: visionchina@tpg-ir.com
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SOURCE VisionChina Media Inc.
