The letter attached below was distributed on August 12, 2020 by Cellular Biomedicine Group, Inc. to its
employees.
CBMG CEO Letter to Employees
RE: CBMG to be
Acquired by the Consortium
Dear Colleagues:
Im
writing to you today with important news. Following careful deliberation by a special committee of the Board of Directors comprised solely of independent and disinterested directors of the Company, we have entered into an agreement to be acquired by
a consortium consisting of myself, certain other members of CBMG management (Yihong Yao, Li (Helen) Zhang and Chengxiang (Chase) Dai), Dangdai International Group Co., Limited, Mission Right Limited, Wealth Map Holdings Limited, Earls Mill Limited,
OPEA SRL, Maplebrook Limited, Full Moon Resources Limited, Viktor Pan, Zheng Zhou, Yunfeng Fund III, L.P., TF Capital Fund III L.P., and Velvet Investment Pte. Ltd. (the Consortium). This is an exciting milestone in our history and will
give us the expertise and resources needed to position CBMG for long-term success.
We are confident and assured that, subject to the completion of the
transaction, the Consortium is the right partner to position CBMG for future growth. Following the closing of the transaction, we will retain the CBMG name, and will continue with business as usual. As a private company, we will have access to the
resources and long-term commitment needed to better pursue new capital investment in existing assets and targeted acquisition opportunities as our sector continues to evolve, including further geographic and product diversification.
Your talent, dedication and commitment have been, and will continue to be, a driving force behind both our success to date and the Consortiums interest
in CBMG. You have done outstanding work in building our company and todays announcement represents clear recognition of that work. While this announcement is exciting, it is only the first step in the process, and I ask that you continue to
focus on your daily responsibilities and on achieving your research and development goals. For now, our operations will continue to function as usual and there will be no impact on your
day-to-day responsibilities. I would like to emphasize that there are no plans for any closures or relocations, and the Consortium is committed to continuing to offer
compensation and benefits that are comparable and competitive in the markets in which we operate. Your executive leadership team remains fully committed to our future success, and were excited for this new chapter in the history of CBMG. We
look forward to working with the Consortium to continue to grow our company, which we believe will lead to exciting new opportunities for our employees.
The transaction is subject to shareholder and regulatory approvals and other customary closing conditions and is expected to close in the fourth quarter of
2020. In the meantime, I would like to emphasize that, as always, our commitment to excellence should be our top priority, and we need to stay focused on our everyday duties and responsibilities. We will continue to keep you informed
throughout the process and communicate any important developments.
Should you have additional questions, please feel free to reach out to senior
leadership, including your Business Unit Manager, or email Jessie.Shen@cellbiomedgroup.com
If you receive any inquiries from collaborators or suppliers
related to the announcement, please refer them to your Business Unit Manager. If a member of the media contacts you, please do not comment and pass on their details to Wang Qing at Qing.Wang@cellbiomedgroup.com.
Thank you again for everything you do for CBMG and for your continued commitment to development and operational excellence. I believe this opportunity will
help us continue our legacy and I believe in all of you. I look forward to working with you and achieving great things together in this next chapter of our companys history.
Sincerely,
Tony