BEIJING, July 20, 2016 /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 ruling by the Grand Court of Cayman Islands (the "Cayman Islands Ruling"),
concerning the Company's breach of the Settlement Agreement (the
"Settlement Agreement") dated April 30,
2014 with Oak Investment Partners XII, Limited
Partnership, Gobi Partners, Inc. n/k/a Gobi
Ventures, Inc., Gobi Fund, Inc. and Gobi Fund II,
L.P. (collectively, the "Plaintiffs"). The Cayman Islands
Ruling orders VisionChina Media to pay the Plaintiffs a)
approximately $59.4 million (the
"Judgment Amount"), b) interest at the rate of 9% per annum
calculated from November 16, 2010 as
to $30 million and from November 16, 2011 as to the remaining portion of
the Judgment Amount, until such Judgment Amount is paid in full and
c) costs on the indemnity basis to be taxed if not agreed.
The Company acquired Digital Media Group Company Limited (the
"Acquisition") from the Plaintiffs in November 2009 and entered into the Settlement
Agreement with the Plaintiffs in April
2014 to settle all litigations arising from the Acquisition.
Pursuant to terms of the settlement agreement, VisionChina
Media agreed to pay the Plaintiffs an aggregate amount
of US$70 million, including US$12 million in cash
and US$58 million in six-year term convertible promissory
notes issued by VisionChina Media, in addition to certain
other consideration to satisfy a prior judgment of approximately
US$71.8 million.
The Company seeks to enter into a new settlement agreement with
the Plaintiffs to satisfy the Cayman Islands Ruling. The parties
are currently in discussions regarding such settlement
agreement.
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,
2015, VisionChina Media's advertising network included
approximately 97,757 digital television displays on mass
transportation systems in 18 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 30 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 30,000 buses under the brand name "VIFI," with approximately
10 million registered users.
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
In the United
States:
The Piacente Group, Inc.
Mr. Don Markley
Tel: +1 212-481-2050
E-mail: visionchina@tpg-ir.com
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SOURCE VisionChina Media Inc.