BEIJING, Feb. 19, 2019
/PRNewswire/ -- AirMedia Group Inc. ("AirMedia" or the "Company")
(Nasdaq: AMCN), an operator of out-of-home advertising platforms in
China targeting mid-to-high-end
consumers as well as a first-mover in the travel Wi-Fi market,
today announced that its subsidiary Guangzhou Meizheng Online
Network Technology Co., Ltd. (the "Subsidiary") has filed a lawsuit
aiming to resolve disputes arising out of the non-performance of
the Franchising Operation Agreement of Wi-Fi Wireless Network on
High-speed trains Administered under Beijing Railway Administration
(the "Agreement") signed on August 29,
2014 with China Railway Century Media Advertising Co., Ltd.
and China Railway Beijing Group Co., Ltd. The lawsuit was filed
with the Beijing High People's Court (the "Court")
and the first court appearance is set
for March 14, 2019.
According to the Agreement, China Railway Century Media
Advertising Co., Ltd. authorized the Subsidiary exclusive on-train
concession rights to provide digital advertising media for
high-speed trains for 6 years. The Agreement was subjected to an
automatic renewal should there be no significant breach of the
Agreement from either party. In the duration of the Agreement,
the Subsidiary would be exclusively entitled to, among other
rights, install and operate Wi-Fi systems on the high-speed trains
operated by Beijing Railway Bureau. According to the lawsuit, since the
consummation of the Agreement, China Railway Century Media
Advertising Co., Ltd. delayed and
eventually refused to perform the obligations under the Agreement.
The Subsidiary is applying to the
Court to terminate the Agreement and release the Subsidiary's
obligations. The Subsidiary
will also be seeking approximately RMB829 million as liquidated damages. As the
trial has not started yet, it is not possible at this stage to
determine the impact of this lawsuit on the company's profits in
the current period or afterwards.
About AirMedia Group
Incorporated in 2007 and headquartered in Beijing, China, AirMedia Group Inc. AMCN is an
operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers as
well as a first-mover in the travel Wi-Fi market. AirMedia sells
advertisements on the routes operated by several Chinese airlines
and also has concession rights to operate the Wi-Fi systems on
trains administered by several railway administrative bureaus in
China. For more information,
please visit http://www.airmedia.net.cn.
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the Company's business
strategies and initiatives as well as the Company's business plans;
the Company's future business development, results of operations
and financial condition; expected changes in the Company's revenue
and certain cost or expense items; trends and competition in
China; general economic and
business conditions in China; and
other risks detailed in the Company's filings with the Securities
and Exchange Commission. These forward-looking statements involve
known and unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will," "expect," "anticipate,"
"aim," "estimate," "intend," "plan," "believe," "potential,"
"continue," "is/are likely to" or other similar expressions. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results.
For more information, please contact:
Director, Investor Relations
AirMedia Group Inc.
SOURCE AirMedia Group Inc.