SHANGHAI, Aug. 18, 2020 /PRNewswire/ -- Acorn
International, Inc. (NYSE: ATV) ("Acorn" or the
"Company"), a leading marketing and branding company
in China, today announced that the board of directors of the
Company (the "Board") has received on August 17, 2020 US
time a preliminary non-binding proposal letter,
dated August 17, 2020 (the "Proposal"), from
Mr. Robert W. Roche, Executive Chairman of the Company, to
acquire all of the outstanding shares of the Company not already
owned by the Buyer Vehicle (as defined below)
at US$15.22 per American Depositary Share (the "ADS,"
each ADS representing twenty ordinary shares)
or US$0.761 per ordinary share in cash, subject to
certain conditions (the "Proposed Acquisition"). According to the
Proposal, it is anticipated that the Buyer Vehicle or its
shareholders will control approximately 75% of the outstanding
shares of ordinary shares of the Company.
According to the Proposal, Mr. Robert W.
Roche will form a transaction vehicle (the "Buyer Vehicle")
for the purpose of pursuing the proposed transaction. It is
currently expected that substantially all of the capital for the
Proposed Acquisition would be borrowed from third parties in the
form of debt funding. In that regard, the Buyer Vehicle has
entered into an agreement with a third party lender pursuant to
which, subject to certain terms and conditions, such lender will
provide such proposed funds. The third party lender will require a
timely opportunity to conduct customary legal, financial and
accounting due diligence, and satisfactory completion of such due
diligence is a condition to the lender providing the proposed
funds.
The Special Committee of the Board will schedule a meeting to
consider next steps with respect to the Proposal. No decisions have
been made with respect to the Company's response to the Proposed
Acquisition. There can be no assurance that any definitive offer
will be made, that any agreement with respect thereto will be
reached or executed, or that this or any other transaction will be
approved or consummated.
About Acorn International, Inc.
Acorn International is a leading marketing and branding company
in China, leveraging a twenty-year
direct marketing history to monetize brand IP, content creation and
distribution, and product sales, through digital media in
China. For more information visit
www.acorninternationalgroup.com.
Safe Harbor Statement
This news release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of 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 "anticipates," "believes,"
"estimates," "expects," "future," "going forward," "intends,"
"outlook," "plans," "target," "will," "would," "potential,"
"proposal" and similar statements. Such statements are based on
current expectations and current economic, market and operating
conditions, and relate to events that involve known or unknown
risks, uncertainties, and other factors, all of which are difficult
to predict and many of which are beyond control, which may cause
actual results, performance, actions, or achievements to differ
materially from those in the forward-looking statements. Further
information regarding these and other risks, uncertainties, or
factors is included in the Company's filings with the U.S.
Securities and Exchange Commission. 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
by law.
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SOURCE Acorn International, Inc.