Professional Diversity Network, Inc. (NASDAQ:IPDN) (“PDN” or “the
Company”), a developer and operator of online networks that provide
networking and access to employment opportunities for women and
other diverse professionals in the United States, today
announced several executive officer transitions and identified the
opportunities it intends to pursue following the successful closing
of its transaction with Cosmic Forward Limited (“CFL”).
HIGHLIGHTS:
- Maoji (Michael) Wang to CEO; Katherine Butkevich to NAPW CEO;
David Mecklenburger to depart; Xin (Adam) He to Interim CFO
- Developing new U.S. business lines
- Exporting the Company’s networking business to China
- Developing new business lines in China
On December 22, 2016, the Company appointed Maoji (Michael) Wang
as Chief Executive Officer. Mr. Wang is currently a director
of the Company and is Chief Executive Officer and an investor in
CFL. He is also the managing partner of Beijing Daqian Law
Firm and has held that position since November 2005. He
previously has served as vice president of GNet Group PLC,
the successful Chinese e-commerce company, and Chief Executive
Officer of Tibet Weibai Investment Fund Management Co., Ltd. since
March 2016, Guangzhou Gaixin Network Technology Development Co.,
Ltd. since May 2016 and Guangzhou Yougaojiu Marketing Management
Co., Ltd since June 2016. Initially, Mr. Wang will not be an
employee of the Company. At the same time, the Company
transitioned Katherine Butkevich from CEO to CEO of the Company’s
largest subsidiary by revenue, NAPW. In addition, the Company
announced the departure of David Mecklenburger, CFO, who is leaving
to pursue a new senior executive position, effective as of December
31, 2016. The Company is currently in the process of finding
a permanent replacement for Mr. Mecklenburger. Mr. Xin (Adam) He
will serve as the Interim CFO of the Company beginning January 1,
2017.
Mr. Jim Kirsch, the Company’s founder of its original careers
business, previous CEO and current Co-Chairman of its Board of
Directors, applauded the changes, “We have recently re-constituted
our Board of Directors and its various committees, and have taken
these organizational steps to allow us to pursue our strategic
opportunities, with Mr. Wang leading our global vision and
expansion into China and Ms. Butkevich running NAPW, our largest
division.”
Mr. Michael Wang stated, “I am very proud of the team we are
building at PDN. In the first 45 days since we closed our
transaction on November 7, we have worked together to identify
strengths, weaknesses and opportunities, and have already started
to build cross-functional teams to address each of those. Given
what we have seen so far, we are all very enthusiastic about our
future.”
Mr. Jingbo Song, Co-Chairman of PDN’s Board of Directors, agreed
noting, “We held our first Board meeting the week that we
closed. In the brief time since then, we have met again to
review qualifications and understand our resources, which has
allowed us to appoint our committee members and chairs, develop a
working relationship and focus those resources toward the goal of
profitably growing this business and maximizing value to our
stockholders.”
Mr. Wang noted that the Company has identified multiple areas of
opportunity which, if realized, may position PDN for healthy growth
into the future, including:
(1) Leveraging the Company’s relationship with CFL and its
affiliates’ technical expertise, Chinese contacts and resources,
and the Company’s existing human and technology capital, to develop
new U.S. business lines, potentially including a China-U.S.
education brokerage and an e-commerce business;
(2) Developing a PDN wholly foreign-owned enterprise (“WFOE”) in
China and using both the Company’s existing expertise and related
resources in the networking business and CFL’s China expertise and
contacts to expand the NAPW networking business and other potential
educational and training businesses to China;
(3) Developing a PDN wholly-owned subsidiary or Special Purpose
Vehicle (“SPV”) in Hong Kong, and leveraging both PDN and its
relationship with CFL to develop new businesses through the SPV in
China, potentially including a broad-scale education platform;
(4) Identifying financing in the capital markets to help with
the company expansion.
Mr. Kirsch is leading the Company’s U.S. management of these
opportunities. He explained that “our partners at CFL in
general, and Mr. Wang in particular, have worked with us to develop
a very clear vision with a realistic roadmap that we believe gives
us a legitimate opportunity for success. Since closing we
have already made significant headway toward each of our aforesaid
opportunity areas, and we have teams in place and are making
progress on each. Having been the steward of our
shareholder’s value since PDN went public in early 2013, I am
incredibly heartened by the opportunities before us and my belief
in our ability to realize them.”
About Professional
Diversity Network, Inc.
The Professional Diversity Network platform provides
employers that value diversity with access to diverse talent to
meet their hiring needs. Professional Diversity
Network owns and operates professional networking communities
including: www.iHispano.com for Hispanic professionals,
www.BlackCareerNetwork.com for African-American professionals,
www.WomensCareerChannel.com for professional
women, www.Military2Career.com for
Veterans, http://www.ProAble.net for professionals with
disabilities, www.OutProNet.com for professionals in
the LGBT community, and www.AsianCareerNetwork.comfor
Asian-American professionals. In addition, the Company
operates the National Association of Professional Women, at
www.napw.com, the country’s largest networking organization
dedicated to professional women. For more information,
visit: www.prodivnet.com.
Safe Harbor under the Private Securities Litigation
Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995
concerning Professional Diversity Network, its affiliations
and alliances, and its business strategies. These statements or
disclosures may discuss goals, intentions and expectations as to
future trends, plans, events, results of operations or financial
condition, or state other information relating to Professional
Diversity Network, based on current beliefs of management as well
as assumptions made by, and information currently available to,
management. Forward-looking statements can generally be identified
by words such as "may" "anticipate," "believe," "plan," "could,"
"estimate," "expect," "forecast," "guidance," "intend," "may,"
"possible," "potential," "predict," "project" or other similar
words, phrases or expressions, and include statements regarding the
Company’s plans to expand in China, its expectations for future
profitable growth, potential new business lines, and the need for
additional capital. These forward-looking statements are subject to
various risks and uncertainties, many of which are outside
of Professional Diversity Network's control. Therefore,
investors and shareholders should not place undue reliance on such
statements. Factors that could cause actual results to differ
materially from those in the forward-looking statements
include Professional Diversity Network's ability to
maintain its business relationships with its key customers;
unanticipated changes and competition in the online recruitment
market; unanticipated downturns in the economy; Professional
Diversity Network's ability to generate recruitment revenue
through direct sales; unexpected technical or marketing
difficulties; unexpected claims, charges or litigation; and
new laws and governmental regulations. The foregoing list of
factors is not exhaustive. Investors and shareholders should
carefully consider the foregoing factors and the other risks and
uncertainties that affect Professional Diversity
Network's business described in its Annual Report on Form 10-K
filed on March 30, 2016, as amended, its Quarterly Report on Form
10-Q filed on August 15, 2016, its Quarterly Report on Form 10-Q
filed on November 14, 2016 and any subsequent filings made by it
with the SEC. The forward-looking statements in this press release
speak only as of the date they were made. Professional
Diversity Network does not assume any obligation to update
these forward-looking statements.
CONTACTS:
PDN
Christopher Wesser, EVP & Secretary
(516) 659-8560
investor@prodivnet.com
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