BEIJING, Sept. 17, 2014 /PRNewswire/ -- AirMedia Group
Inc. ("AirMedia" or the "Company") (Nasdaq: AMCN), a leading
operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers,
today announced that Qingdao Goldstone Zhixin Investment Centre
(Limited Partnership) ("Goldstone Zhixin"), a special purpose
vehicle funded by AirMedia and its co-investors and incorporated
for the purpose of the aftermentioned subscription, entered into a
Capital Injection Agreement (the "Capital Injection Agreement")
with Sinopec Marketing Co., Ltd. ("Marketing Co.") and other
investors on September 12, 2014,
pursuant to which Goldstone Zhixin will subscribe for 0.42% equity
interest in Marketing Co. for a total consideration of RMB1.5 billion (the "Capital Injection").
AirMedia participated in the Capital Injection as a strategic
investor and agreed to subscribe for 3.33% limited partnership
interest in Goldstone Zhixin for an aggregate consideration of
RMB50 million (US$8.1 million).
Before the execution of the Capital Injection Agreement,
AirMedia obtained exclusive contractual concession rights to
develop and operate outdoor advertising platforms at the service
stations of China Petroleum & Chemical Corporation ("Sinopec
Corp.") located throughout China
until the end of 2020.
"We are excited about the participation in the Capital
Injection, which will further secure our concession rights of our
gas station media network in the Sinopec Corp's service stations.
In addition to the potential capital gains in the IPO of Marketing
Co. in the future, our participation will provide us with a solid
foundation for broader and deeper future co-operation with
Marketing Co. As of June 30, 2014,
our cash, restricted cash and short-term investments totaled
US$113.2 million. We have sufficient
capital to fund our portion in the Capital Injection through
internal resources," commented Mr. Herman
Guo, chairman and chief executive officer of AirMedia.
About China Petroleum & Chemical Corporation
("Sinopec Corp.") and Marketing
Co.
Sinopec Corp. is one of the largest integrated energy and
chemical companies in China. Its
principal operations include exploration and production, pipeline
transportation and sale of petroleum and natural gas; sale, storage
and transportation of petroleum products, petrochemical products,
coal chemical products, synthetic fiber, fertilizer and other
chemical products; import and export, including an import and
export agency business, of petroleum, natural gas, petroleum
products, petrochemical and chemical products, and other
commodities and technologies; and research, development and
application of technologies and information.
Marketing Co. is a subsidiary of Sinopec Corp. and principally
engaged in marketing and distributing refined petroleum
products.
About AirMedia Group Inc.
AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of
out-of-home advertising platforms in China targeting mid-to-high-end consumers.
AirMedia operates the largest digital media network in China dedicated to air travel advertising.
AirMedia operates digital frames in 31 major airports and digital
TV screens in 30 major airports, including most of the 30 largest
airports in China. In addition,
AirMedia sells advertisements on the routes operated by seven
airlines, including the four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and
light boxes, and other digital media, such as mega-size LED
screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2020 to develop and operate
outdoor advertising platforms at Sinopec's service stations located
throughout China.
For more information about AirMedia, please visit
http://www.airmedia.net.cn.
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
"will," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate," "confident" and similar statements. Among
other things, the Business Outlook section and the quotations from
management in this announcement, as well as AirMedia Group Inc.'s
strategic and operational plans, contain forward-looking
statements. AirMedia may also make written or oral forward-looking
statements in its reports to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about AirMedia's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to: if advertisers or the viewing
public do not accept, or lose interest in, AirMedia's air travel
advertising network, AirMedia may be unable to generate sufficient
cash flow from its operating activities and its prospects and
results of operations could be negatively affected; AirMedia
derives most of its revenues from the provision of air travel
advertising services, and any slowdown in the air travel
advertising industry in China may
materially and adversely affect its revenues and results of
operations; AirMedia's strategy of expanding its advertising
network by building new air travel media platforms and expanding
into traditional media in airports may not succeed, and its failure
to do so could materially reduce the attractiveness of its network
and harm its business, reputation and results of operations; if
AirMedia does not succeed in its expansion into gas station,
in-flight internet services and in-air multimedia platform or other
outdoors media advertising, its future results of operations and
growth prospects may be materially and adversely affected; if
AirMedia's customers reduce their advertising spending or are
unable to pay AirMedia in full, in part or at all for a period of
time due to an economic downturn in China and/or elsewhere or for any other
reason, AirMedia's revenues and results of operations may be
materially and adversely affected; AirMedia faces risks related to
health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or
disrupt its operations; if AirMedia is unable to retain existing
concession rights contracts or obtain new concession rights
contracts on commercially advantageous terms that allow it to
operate its advertising platforms, AirMedia may be unable to
maintain or expand its network coverage and its business and
prospects may be harmed; a significant portion of AirMedia's
revenues has been derived from the six largest airports and four
largest airlines in China, and if
any of these airports or airlines experiences a material business
disruption, AirMedia's ability to generate revenues and its results
of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
its future prospects and results of operations; and other risks
outlined in AirMedia's filings with the U.S. Securities and
Exchange Commission. AirMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
Investor Contact:
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
SOURCE AirMedia Group Inc.