BEIJING, April 27, 2021 /PRNewswire/ -- Glory Star New
Media Group Holdings Limited (NASDAQ: GSMG) ("Glory Star" or the "Company"), a leading digital
media platform and content-driven e-commerce company in
China, today announced that it has
signed a non-binding letter of intent ("LOI") to acquire YMT
Holding Limited ("YMT"), a leading integrated cross-border
e-commerce platform in China.
Pursuant to the LOI, Glory Star
intends to issue restricted shares to acquire 100% YMT's equity
where upon YMT will become a wholly owned subsidiary of
Glory Star. The combined company
will aim to become one of the leaders in a globalized,
content-driven e-commerce industry, with an estimated user base of
more than 300 million people.
Established in 2010 in China,
YMT provides an independent cross-border e-commerce platform with
over 100 million registered users in 88 countries and over 800
thousand online products available for sale daily. YMT has built
its own international logistics service and created a global
closed-loop e-commerce and logistics system. YMT has also
established logistics centers in 13 metropolitan cities across the
world, including New York,
San Francisco, Los Angeles, London, Paris, Frankfurt, and Sydney. YMT has raised over US$100 million of capital from well-known
institutions including Sina, SAIF Asia, Sailing Capital and China
Merchants Capital. In 2020, YMT was named as one of the Hurun
Global Unicorns.
Mr. Bing Zhang, Founder and Chief Executive Officer of
Glory Star, commented, "There is
substantial synergy between Glory
Star and YMT. Glory Star is
strong in creating high-quality lifestyle content through its short
video and interactive live-streaming platform. We can help YMT to
efficiently acquire more high-quality customers and improve user
stickiness. At the same time, YMT can provide CHEER e-Mall and
other Glory Star subsidiaries with
efficient global supply chain management and easy access to
high-quality and globally-sourced consumer goods. Together, we can
build an industry-leading platform integrating live streaming with
e-commerce. We can develop more key opinion leaders (KOLs) and
accelerate our e-commerce growth. The proposed transaction between
Glory Star and YMT should bring
greater value and returns to the shareholders of both parties."
Completion of the transaction is subject to, among other
matters, the completion of due diligence, the negotiation of a
definitive agreement providing for the transaction, and
satisfaction of the conditions negotiated therein. Accordingly,
there can be no assurance that a definitive agreement will be
entered into or that the proposed transaction will be
consummated.
About Glory Star New Media Group Holdings Limited
Glory Star New Media Group Holdings Limited is a leading digital
media platform and content-driven e-commerce company in
China. Glory Star's ability to integrate premium
lifestyle content, including short videos, online variety shows,
online dramas, live streaming, its Cheers lifestyle video series,
e-Mall, and mobile app, along with innovative e-commerce offerings
on its platform enables it to pursue its mission of enriching
people's lives. The Company's large and active user base creates
valuable engagement opportunities with consumers and enhances
platform stickiness with thousands of domestic and international
brands.
Safe Harbor Statement
Certain statements made in this release are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "estimates,"
"projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "should," "future,"
"propose" and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements. Such forward-looking states
include, but are not limited to, the Company's ability to develop
its online retail and SaaS industry value chains, expand its
business relationship with existing clients and continue its
business growth trajectory. These forward-looking statements
are not guarantees of future performance, conditions or results,
and involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
the Company's control, that could cause actual results or outcomes
to differ materially from those discussed in the forward-looking
statements. Important factors, among others, are: the ability to
manage growth; ability to identify and integrate other future
acquisitions; ability to obtain additional financing in the future
to fund capital expenditures; fluctuations in general economic and
business conditions; costs or other factors adversely affecting the
Company's profitability; litigation involving patents, intellectual
property, and other matters; potential changes in the legislative
and regulatory environment; a pandemic or epidemic; the occurrence
of any event, change or other circumstances that could give rise to
the terms of the LOI not hereafter being reflected in a definitive
agreement; the ability of the Company to meet NASDAQ listing
standards following the transaction and in connection with the
consummation thereof; the inability to complete the transactions
contemplated by the LOI and any definitive agreement entered into
by the parties due to the failure to obtain approval of the
stockholders, if required, or other reasons; costs related to the
proposed transaction; the ability of the combined company to meet
its financial and strategic goals, due to, among other things,
competition, the ability of the combined company to pursue a growth
strategy and manage growth profitability; and the possibility that
the combined company may be adversely affected by other economic,
business, and/or competitive factors. The forward-looking
statements contained in this release are also subject to other
risks and uncertainties, including those more fully described in
the Company's filings with the Securities and Exchange Commission.
The Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.
Such information speaks only as of the date of this release.
Contacts
Glory Star New Media Group Holdings
Limited
Yida Ye
Email: yeyida@yaoshixinghui.com
ICR LLC.
Sharon Zhou
Tel: +1 (646) 308-0546
Email: gsnm@icrinc.com
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SOURCE Glory Star New Media Group Holdings Limited