NEW YORK, Dec. 5, 2016
/PRNewswire/ --
- Sun Seven Stars (SSS) to contribute 67% to the
capitalization of the Holding Company
- As part of the capitalization, SSS will also transfer all of
its current and any future WCST stock holdings to the Holding
Company
- Guizhou Guibao Investment Fund (GGIF) to contribute 33% to
the capitalization of the Holding Company (SSS is a 10% limited
partner in GGIF)
- As part of its objective, Holding Company will conduct open
market purchases of WCST stock
Wecast Network, Inc. (NASDAQ: WCST) ("Wecast" or the "Company"
or "WCST"), announced today on behalf of Sun Seven Stars Media
Group ("Sun Seven Stars"), the creation of a 3 Billion RMB ($437
million USD) holding company (the "Holding Company"), 67%
capitalized by Sun Seven Stars and 33% capitalized by Guizhou
Guibao Investment Fund ("GGIF"). Sun Seven Stars is also a
10% limited partner in GGIF. Wecast Network, Inc. is not a party to
this Holding Company nor is Wecast contributing to any part of the
capitalization.
The Holding Company, aside from being injected with Sun Seven
Stars current and future WCST stock holdings, will additionally be
funded with 1 billion RMB cash
(approximately $146 million USD) in
three phases: 300 million RMB
(approximately $44 million USD) by
the end of 2016; 400 million RMB
(approximately $58 million USD)
estimated by March 1, 2017;
300 million RMB (approximately
$44 million USD) estimated by
August.
The objective of the Holding Company will be to support and
invest in, the future growth and business scope expansion of Wecast
Network, Inc., exclusively. More specifically, the Holding
Company will help finance the Company's growth if needed and
in addition, will conduct WCST share purchases in the open
market.
About Wecast Network, Inc.
(http://corporate.yod.com)
Wecast Network, Inc. (NASDAQ: WCST) is leveraging and
optimizing its current operations as a premium content Video On
Demand service provider in China
to evolve into a global, vertical, ubiquitous and transactional
B2B2C, mobile-driven, consumer management platform for both
enterprises and consumers. By aiming to establish the world's
premier multimedia, social networking and smart e-commerce-enabled
network with the largest global effective connected user base,
Wecast, through this expanded, cloud-based, ecosystem of connected
screens combined with strong partnerships with leading global
providers, will be capable of delivering a vast array of
WCST/YOD–branded products and services to enterprise customers and
end-use consumers - anytime and anywhere, across
multiple platforms and devices.
Wecast has content distribution agreements in place with many
of Hollywood's top studios including Disney Media
Distribution, Paramount Pictures, NBC Universal and Twentieth
Century Fox Television Distribution, Miramax, as well as a broad
selection of the best content from Chinese filmmakers. In
addition, the Company has governmental partnerships and licenses as
well as numerous JV partnerships and strategic cooperation
agreements with an array of distribution and content partners in
the global new media space. Wecast is headquartered in both
New York, NY and Beijing, China.
About Bruno Wu and Sun Seven Stars
Bruno Wu is now the Founder, Co-Chairman and CEO of Sun
Seven Stars Media Group Limited, one of the biggest private media
and investment conglomerates in China. Its predecessor is Sun
Media Group Holdings Limited, which was established by Bruno
Wu and Yang Lan in 1999 and became one of the
leading entertainment, media and investment companies
in Asia after 10 years of growth. Sun Seven Stars Media
Group Limited now has 7 business units including Sun Media Group,
Sun Seven Stars Culture Group, Wecast Media Group, Sun Medical
Group, Sun Art Group, Sun Medical Group and Redrock Capital Group.
It has a presence in over ten major cities in the world including:
Beijing, Shanghai, Tianjin, Hong Kong, New
York, LA, Paris, London, Toronto, Seoul and Scandinavia
countries.
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.
CONTACT:
Jason Finkelstein
Director Strategy &
IR
Wecast Network,
Inc.
212-206-1216
SOURCE Wecast Network, Inc.