SHANGHAI, Nov. 22, 2017 /PRNewswire/ -- Acorn
International, Inc. (NYSE: ATV) ("Acorn" or the "Company") today
announced that it has entered into a Strategic Cooperation
Framework Agreement with Cachet Hotel Group Limited Cayman L.P.
("Cachet"), an international hospitality branding and management
company. It is also part of the Roche Enterprises Limited group of
companies. Roche Enterprises Limited is owned by Acorn's Executive
Chairman, Mr. Robert Roche and Mr.
Roche is the Executive Chairman and the majority shareholder of
Cachet. In addition, Mr. Jacob A.
Fisch, Acorn's Chief Executive Officer is a shareholder and
member of the Board of Directors of Cachet. This Strategic
Cooperation Framework Agreement is part of Acorn's growth strategy
to leverage its affiliate connections and, to the extent possible,
build a stronger relationship with its fellow Roche Enterprises
Limited portfolio companies.
Under the Strategic Cooperation Framework Agreement, Acorn will
become Cachet's preferred supplier for sourcing of all amenities,
textiles, other hotel goods as well as various furniture, fixtures
and equipment for the hotels, restaurants, clubs and other types of
properties managed by Cachet, subject to Acorn's ability to procure
the products satisfying Cachet's requirements on commercially
reasonable terms. Best efforts will be used to ensure that the
owners of these properties purchase their products from Acorn.
"Acorn's relationship with Roche Enterprises Ltd. is a great
asset for the firm, providing opportunities to leverage our
existing procurement capabilities and expand into new markets such
as the hospitality industry through Cachet Hotel Group," said Mr.
Jacob A. Fisch, CEO and President of
Acorn. "This agreement solidifies our relationship and opens the
door for us to expand into several other areas and take advantage
of increasing opportunities within the Roche Enterprises Limited
network of companies.
The Strategic Cooperation Framework Agreement also provides a
credit facility for Acorn to loan to Cachet up to $10.0 million at an interest rate of 8% per annum
for amounts borrowed in USD and 10% for amounts borrowed in RMB,
with each drawdown subject to Acorn's consent in its sole and
absolute discretion. The facility has a three-year term with two
one-year renewal options. Cachet's repayment of all loans under the
credit facility are personally guaranteed by Mr. Roche. As of
September 30, 2017, Acorn had
approximately $23.0 million in cash
and equivalents earning standard bank interest rates. The credit
facility affords Acorn the opportunity to invest its cash reserves
at above market rates and on preferential terms while also allowing
it to use such support to strengthen its strategic relationship
with Cachet.
In accordance with the company's corporate governance guidelines
and its audit committee charter, Acorn's entry into the strategic
cooperation agreement, including the transactions with an entity
affiliated with Mr. Robert Roche and
Mr. Jacob Fisch, was reviewed and
approved by Acorn's audit committee as well as the full board of
directors.
About Cachet Hotel Group
Cachet Hospitality Group is a global hospitality branding,
design and management company with an expanding portfolio of
premier hotel, food, beverage and nightlife brands in the Americas,
Greater China and South-East Asia. Its newest property, Cachet
Boutique NYC, marks Cachet's exciting entry into the US market in
2017, with established properties operating in Shanghai, Kunming, Phuket, Cabo San
Lucas. CHG has a confirmed pipeline in Utah, Shaoxing, Baoji, Wuhan, Chengdu and Bangkok and additional development in
Cabo San Lucas. CHG has offices in
Shanghai, Bangkok and Los
Angeles. For more information visit
https://www.cachethotelgroup.com/.
About Roche Enterprises, Ltd.
Roche Enterprises invests in a broad range of industry
sectors, including consumer (products, media, and branding),
hospitality, real estate, financial, energy, and logistics.
Specializing in the U.S., Japan
and China markets spanning the
Asia-Pacific region, it was
founded by Robert W. Roche, its Chairman. Through Roche
Enterprises and his other companies, Roche has helped create, fund
or manage more than 40 companies that have generated more than
$1 billion in enterprise
value. For more information visit
www.rocheenterprises.com.
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.