SHANGHAI, Aug. 13, 2019 /PRNewswire/ -- JMU Limited (the
"Company" or "JMU") (Nasdaq:
JMU) today announced that the Company
has entered into definitive agreements regarding a private
placement of US$4 million and an
acquisition of cryptocurrency solutions business.
Pursuant to a share purchase agreement, the Company will issue
and sell 609,162,824 ordinary shares to a New York holding company wholly owned by Mr.
Haohan Xu, the largest shareholder
and a director of the Company, for a cash consideration of
US$4 million.
The Company has also entered into a share purchase agreement
with Beijing Jiatong Huineng Technology Co., Ltd. ("Beijing Jiatong
Huineng"), its affiliated offshore holding company (together with
Beijing Jiatong Huineng, "Jiatong Huineng Group") and Mr.
Shijie Hu, an independent third
party owning Jiatong Huineng Group. Pursuant to the agreement, the
Company will issue 609,162,824 ordinary shares to Mr. Shijie Hu in exchange for the entire ownership
in Jiatong Huineng Group.
The transactions contemplated under the definitive agreements
are subject to customary closing conditions. After the closing of
these transactions, Mr. Haohan Xu
will hold approximately 48.7% of the Company while Mr. Shijie Hu will hold approximately 18.3% of the
Company. On a pro forma basis to give effect to these transactions
and the previously announced divestment by the Company of its food
supply chain business in July 2019,
the Company's stockholders' equity as of June 30, 2019 would be approximately US$16.0 million. Please see the unaudited pro
forma consolidated balance sheet as of June
30, 2019 at the end of this press release.
"These transactions are part of the Company's continuing efforts
to increase working capital and explore new business
opportunities," commented Ms. Hua Zhou, the chairperson of the
board of directors and the chief executive officer of the Company.
"Jiatong Huineng Group develops a SaaS asset transaction platform
based on blockchain and smart contract technologies and provides
cryptocurrency solution services to customers. We believe that this
acquisition will strengthen our R&D capabilities that help us
implement a comprehensive upgrade of our service platform in terms
of product functionality, platform security and stability and
program compatibility."
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"aim," "anticipate," "believe," "estimate," "expect," "hope,"
"going forward," "intend," "ought to," "plan," "project,"
"potential," "seek," "may," "might," "can," "could," "will,"
"would," "shall," "should," "is likely to" and the negative form of
these words and other similar expressions. Among other things,
statements that are not historical facts, including statements
about JMU's beliefs and expectations
are or contain forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement. All information
provided in this press release is as of the date of this press
release and is based on assumptions that JMU believes to be reasonable as of this date, and
JMU does not undertake any obligation
to update any forward-looking statement, except as required under
applicable law.
Contact:
Xingyan Gao
JMU Limited
ir@ccjmu.com
Tel: +86 (021) 6015-1166, ext. 8904
JMU
Limited
|
Unaudited Pro
Forma Consolidated Balance Sheet
|
The unaudited pro
forma balance sheet below assumes the following transactions were
completed as of
June 30, 2019: (i) the divestment of the food supply chain business
which was completed on July 22, 2019, (ii) the
acquisition of Jiatong Huineng Group, and (iii) the private
placement of US$4 million to Mr. Haohan Xu.
|
|
|
|
|
Actual
|
Pro
Forma
|
|
June 30,
2019
|
June 30,
2019
|
|
US$
|
US$
|
|
|
|
Current
Assets:
|
|
|
Cash and cash
equivalents
|
528,557
|
5,128,861
|
Accounts receivable,
net
|
60,046
|
300,000
|
Amounts due from
related parties
|
842,215
|
—
|
Prepaid expenses and
other current assets
|
856,411
|
2,604
|
Total current
assets
|
2,287,229
|
5,431,465
|
|
|
|
Non-current
Assets:
|
|
|
Property and
equipment, net
|
352,596
|
—
|
Intangible
assets
|
1,200,000
|
1,200,000
|
Goodwill
|
5,645,603
|
9,324,289
|
Total non-current
assets
|
7,198,199
|
10,524,289
|
|
|
|
TOTAL
ASSETS
|
9,485,428
|
15,955,754
|
|
|
|
Current
Liabilities:
|
|
|
Short-term bank
borrowing
|
7,283,321
|
—
|
Accounts and notes
payable
|
225,409
|
—
|
Accrued expenses and
other current liabilities
|
5,789,771
|
569,715
|
Advance from
customer
|
160,130
|
60,000
|
Amounts due to
related parties
|
6,083,072
|
—
|
Total current
Liabilities
|
19,541,703
|
629,715
|
|
|
|
Non-current
Liabilities:
|
|
|
Amounts due to
related parties
|
7,099,122
|
—
|
Total non-current
liabilities
|
7,099,122
|
—
|
|
|
|
TOTAL
LIABILITIES
|
26,640,825
|
629,715
|
|
|
|
Stockholders'
Equity:
|
|
|
Common
shares
|
21,095
|
34,186
|
Additional paid-in
capital
|
640,586,167
|
645,396,988
|
Accumulated
deficit
|
(638,648,470)
|
(630,105,664)
|
Accumulated other
comprehensive (loss)/profit
|
(19,114,189)
|
529
|
Total
stockholders' equity:
|
(17,155,397)
|
15,326,039
|
|
|
|
TOTAL LIABILITIES
AND
STOCKHOLDERS'
EQUITY
|
9,485,428
|
15,955,754
|
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SOURCE JMU Ltd