Zoom Agrees to Zhumu Assigning Purchase Rights to Tianjin Huatianli
December 31 2013 - 9:00AM
Zoom Technologies, Inc. (Nasdaq:ZOOM) ("Zoom" or the "Company")
announced it has agreed to the assignment by Beijing Zhumu Culture
Communication Company, Ltd. ("Zhumu") to Tianjin Huatianli Trading
Co., Ltd. ("Huatianli") for the right to purchase the Company's
interest in Tianjin Tongguang Group Digital Communication Company,
Ltd. ("TCBD").
On December 31, 2012, Zoom entered into a Share Purchase
Agreement (the "Share Purchase Agreement") with Zhumu for the sale
of certain of the Company's China-based operations, including its
wholly owned subsidiaries Ever Elite Corporation Limited ("Ever
Elite"), Beijing Nollec Wireless Company ("Nollec"), Profit Harvest
Corporation, Ltd. ("Profit Harvest"), Celestial Digital
Entertainment, Ltd. ("CDE"), and 80% ownership of TCBD. The
aggregate purchase price for the sale of these operations was
RMB200 million (the "Purchase Price").
To date, Zhumu has finalized its acquisition of Ever Elite,
Nollec, Profit Harvest, and CDE. On December 30, 2013, Zhumu
assigned its purchase right of TCBD to a new purchaser,
Huatianli.
On December 30, 2013, Zoom consented to the assignment between
Zhumu and Huatianli and agreed to amend the Share Purchase
Agreement to reflect the change. In connection with the assignment,
RMB120 million, representing the balance of the Purchase Price that
was being held in escrow pending the closing of all of the sales
under the Share Purchase Agreement, was going to be released within
10 business days to a Company-designated bank account. Of that
amount, approximately RMB 68 million is available for the Company's
immediate use, and approximately RMB52 million, representing the
purchase price for TCBD, will be monitored by Huatianli until the
closing of the TCBD sale.
Forward-Looking Statements
Certain statements in this press release may constitute "forward
looking statements" that involve risks and uncertainties. These
include statements about our plans, objectives, assumptions or
future events in which the outcome cannot be assured. You should
not place undue reliance on these forward-looking statements.
Information concerning factors that could cause our actual results
to differ materially from these forward-looking statements can be
found in our periodic reports filed with the Securities and
Exchange Commission. We undertake no obligation to publicly release
revisions to these forward-looking statements to reflect future
events or circumstances or reflect the occurrence of unanticipated
events.
CONTACT: Investor Contact:
Investor Relations
Zoom Technologies, Inc.
+86-10-5935-9576
ir@zoom.com