SHANGHAI, Aug. 11, 2017 /PRNewswire/ -- Acorn
International, Inc. (NYSE: ATV) ("Acorn" or the "Company") today
announced that the Company recently reached an agreement to sell a
majority stake in its HJX business to a third-party investor and
operator. Specifically, the agreement includes the establishment of
a joint venture that will be controlled and operated by such third
party. Acorn's HJX business engages in direct sales of Ozing
branded electronic learning devices incorporating mobile internet
interactive features, such as online tutoring services. The partial
divestiture of this business unit represents an exit of day-to-day
management by Acorn from this business, allowing Acorn to focus on
its already profitable businesses and brands, as well as on
achieving profitable growth of new businesses within the Group.
Under the terms of the agreement, the joint venture will help
liquidate a large stock of HJX inventory, transition certain
expenses on a pro rata basis to the joint venture and allow Acorn
to divest day-to-day operational management to the third-party
team. The joint venture is expected to be operational in the coming
months.
Commenting on the joint venture, Jacob
Fisch, President of Acorn said, "This is a great step
forward for Acorn and a very solid deal for the company within the
context of the overall market environment for electronic learning
products. Despite the history and continuing strength of the Ozing
brand in China, this business has
struggled over the last few years due in large part to an ongoing
secular decline of the specialized educational tablet market, as
well as an inability to innovate fast enough around new software
development. After exploring alternative strategic solutions over
the last year, including efforts to turn the business around with
internal resources, it became clear that this transaction was the
best option for the business at this point in time.
"This joint venture marks one of
our final key steps in turning around and restructuring the
business away from loss-making legacy businesses to focus more
closely on our brands and business areas that support our mandate
for profitable growth," Mr. Fisch concluded.
Executive Chairman Robert Roche agreed, "The agreement with HJX
represents a positive move for Acorn as we realign our strategy and
focus our attention on businesses that will drive profitable
growth."
About Acorn International, Inc.
Co-founded in 1998 by Executive Chairman Robert Roche, Acorn is
a marketing and branding company in China with a proven track record of
developing, promoting and selling a diverse portfolio of
proprietary-branded products, as well as well-established and
promising new products from third parties. Its business is
currently comprised of two main divisions, its direct sales
platforms and its nationwide distribution network. For more
information visit www.acorninternationalir.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," and similar statements. Such
statements are based on management's current expectations and
current 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
the Company's control, which may cause the Company's actual
results, performance, 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.
Contact:
Acorn International,
Inc.
|
Compass Investor
Relations
|
Ms. Naomi
Deng
|
Ms. Elaine Ketchmere,
CFA
|
Phone
+86-21-5151-2944
|
Phone:
+1-310-528-3031
|
Email:
dengqi@chinadrtv.com
|
Email:
Eketchmere@compass-ir.com
|
www.chinadrtv.com
|
www.compassinvestorrelations.com
|
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SOURCE Acorn International, Inc.