WUHAN CITY, China, Dec. 30,
2015 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ:ABAC)
("Aoxin Tianli" or the "Company"), a company focused on hog farming
in China, today announced that it
has executed an equity transfer agreement (the "Equity Transfer
Agreement") to sell the Company's 95% equity interest in Wuhan
Optical Valley Orange Technology Co., Ltd. ("OV Orange") to a group
of third party investors (collectively, the "Transferees").
Pursuant to the Equity Transfer Agreement entered into by and
between the Company and the Transferees on December 29, 2015, the Company agreed to transfer
95% of the equity interests in OV Orange for a total consideration
of RMB47.5 million (approximately
$7.3 million). To facilitate the
transaction, the Company also agreed to waive the earn-out
provisions set forth in the Stock Purchase Agreement executed on
August 26, 2014 (please refer to the
Company's SEC filing at:
http://www.sec.gov/Archives/edgar/data/1486299/000119380514001769/e612663_ex10-1.htm)
and to release the 403,000 "earn-out" shares of the Company's
common stock that are currently held in escrow to Ms. Li-Na Deng at the end of March 2017. The Company's Board of Directors
voted in favor of the transaction on December 29, 2015.
Additionally, the Company announced that it and Guangxi Hongzhen
Investment Co., Ltd. ("Guangxi Hongzhen") have agreed to terminate
the Equity Transfer Agreement, previously entered into by them on
November 13, 2015, whereby Guangxi
Hongzhen was to purchase the Company's interest in Hubei Hang-ao
Servo-valve Manufacturing Technology Co., Ltd. (please
refer to the Company's SEC filing at:
http://www.sec.gov/Archives/edgar/data/1486299/000119380515001884/e614246_ex10-1.htm)
. The Agreement was terminated at the request of Guangxi Hongzhen
as a result of the inability to obtain proper land use permits and
deeds for Hang-ao's properties as a result of the failure of the
developer of the industrial park in which Hang-ao is located to
complete the development of the industrial park and related
permitting procedures. As a result, Hang-ao remains an 88% owned
subsidiary of the Company.
About Aoxin Tianli Group, Inc.
Aoxin Tianli Group, Inc. (the "Company"), previously known as
Tianli Agritech, Inc., is currently a diversified company with
businesses in hog farming, manufacturing and marketing of
electro-hydraulic servo-valves, and the development of optical
fiber hardware and software solutions. Aoxin Tianli is in the
process of disposing of its assets unrelated to hog farming and
refocusing on its hog farming business and related
activities. Through its wholly owned subsidiary, Wuhan Fengze
Agricultural Science and Technology Development Co., Ltd., the
Company engages in the breeding, raising and selling of breeder and
market hogs in China and is
developing a retail channel for its pork products including
high-value, black hog meat.
Forward-Looking Statements
This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
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visit:http://www.prnewswire.com/news-releases/aoxin-tianli-group-inc-announces-the-divestiture-of-ov-orange-and-the-cancellation-of-hang-ao-sale-300197800.html
SOURCE Aoxin Tianli Group, Inc.