NEW YORK, July 10, 2017 /PRNewswire/ -- Wecast Network, Inc. (NASDAQ: WCST) ("Wecast" or "WCST or the "Company") is pleased to announced that it has completed a definitive agreement to sell to BT Capital Global Limited (an affiliate of WCST's Chairman Bruno Wu), the issued and outstanding stock that WCST holds in three separate non-core assets. In exchange for the issued and outstanding stock, WCST will receive consideration of RMB100 million (approximately $14.75 million USD at current exchange rates) in a combination of cash and publicly traded stock to be paid to WCST within one year of closing. A minimum of 20% of the total consideration to WCST will be paid in cash (approximately $2.95 million USD). If any portion of the consideration is in the form of publicly traded stock, the securities will represent a public company affiliated with BT Capital, in an industry related to WCST's and with an average daily trading value of at least $146,000 USD. A fairness opinion, or an independent opinion on the financial fairness of the proposed transaction, will be conducted by a third-party valuation firm before the consideration is delivered to WCST.
The assets being sold to BT Capital Global Limited include:
- WCST's 80% equity interest in Zhong Hai Shi Xun Media;
- WCST's 13% equity interest in Nanjing Tops Game;
- A portion of WCST's 40% total equity interest in the recently announced Pantaflix JV, which will leaves WCST with a remaining 15% stake post transaction.
The impetus behind the asset sales of Zhong Hai Shi Xun Media and Nanjing Tops Game is to streamline the future operations and auditing of the WCST company as a whole by eliminating and monetizing legacy non-core businesses. The sale of a portion of WCST's equity ownership in the Pantaflix JV and the resulting equity ownership percentage, allows WCST to realize gains and still benefit from the JV's future potential upside.
About Wecast Network, Inc. (http://corporate.wecastnetworkinc.com)
Wecast Network (NASDAQ: WCST) is aiming to be the leading provider of total B2B business solutions for today's constantly evolving business landscape. With a focus on 'BASE' technology and infrastructure (Blockchain, Artificial Intelligence, Supply Chain & Exchanges) to power our V PaaS (Virtual Platform as a Service), WCST is creating a closed trade ecosystem for buyers and sellers designed to eliminate supply chain and transactional middlemen and create a more direct and margin-expanding trading path for principals. WCST is applying BASE + V PaaS to focus on 3 Core Cloud Areas: I. Brand, Content & Intellectual Property Cloud; II. Product Sales Cloud; III. Transactional Finance Product Cloud. With the three clouds functioning both independently and interdependently, Wecast is creating a vertical, transactional and flexible platform for today's global enterprises.
The Company's mission and vision is to be the world's leading cloud-based, total B2B enterprise solution & platform provider that empowers businesses to grow with Big Data technology.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Wecast Network, Inc.
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SOURCE Wecast Network, Inc.