BEIJING and URUMQI,
China, Feb.
4, 2019 /PRNewswire/ -- China Lending Corporation
("China Lending" or the "Company") (Nasdaq: CLDC), a non-bank
direct lending corporation servicing micro, small and medium sized
enterprises (MSME), currently underserved by commercial banks in
China, today announced that it has
signed a framework agreement (the "Agreement") to acquire up to
80.4592% of equity interest in Zhejiang Lixin Enterprise Management
Holding Co., Ltd. ("Lixin"), a diversified financial services
company which China Lending currently holds a 1% equity interest
following a transaction completed in January.
Pursuant to the Agreement entered into by and between China
Lending and certain shareholders of Lixin in January 2019, China Lending will acquire up to
80.4592% of equity interest in Lixin from six selling Lixin
shareholders by issuing new shares and/or using cash on hand. These
selling shareholders consist of Shaoxing Gedun Furniture Co., Ltd.,
Hangzhou Yinxiang Assets Management Co., Ltd., Shaoxing Aoyuan
Intellectual Technology Co., Ltd., Dayu Yangguang (Beijing) Assets Management Co., Ltd., Mr. Zhu
Jialin, and Zhejiang Hengmao Construction Co., Ltd. (collectively,
the "Selling Shareholders") who respectively hold 18.6456%,
16.4766%, 13.2932%, 13.1534%, 9.4452% and 9.4452% of equity
interest in Lixin prior to the transaction. The proposed
transaction has been approved by the Board of Directors of China
Lending and majority of the shareholders of Lixin.
Although the exact terms and conditions of the proposed
transaction are still being finalized, financial and legal due
diligence has been launched by respective parties. The proposed
transaction is expected to be consummated through multiple closings
with the first closing by June 30,
2019, subject to further review and approval of China
Lending's Board of Directors and/or shareholders, if needed, as
well as other customary closing conditions.
As part of the closing conditions, Lixin has pledged to meet
average annual net profit target of no less than RMB 20 million (approximately US$3.0 million) for the three years following the
closing of the proposed transaction (the "Net Profit Target"). In
the event Lixin fails to achieve the Net Profit Target, the Selling
Shareholders agree to forfeit certain cash and/or shares it will
receive from China Lending.
Ms. Jingping Li, Chairwoman and
Chief Executive Officer of China Lending, commented, "After three
months of growing collaboration and cooperation, we decide to take
the Lixin partnership to the next level. We look forward to a
smooth transaction in the next several months that could
potentially lead to China Lending gain majority control in Lixin,
further transforming the Company into a profitable and well
diversified financial services company with geographical outreach
well beyond the Xinjiang Uyghur Autonomous Region."
Zhejiang Lixin Enterprise Management Holding Co., Ltd.
("Lixin")
Headquartered in Hangzhou,
Zhejiang province, Lixin is a
financial service company focusing on providing a wide range of
financing solutions and related peripheral services to individuals
and MSMEs, including financial leasing, factoring, private funding,
financing guarantee and supply chain management, in the Yangtze
River Delta Region. Lixin and its subsidiaries are established in
January 2013 with registered capital
of RMB 101 million (approximately
$14 million).
About China Lending Corporation
Founded in 2009, China Lending is a non-bank direct lending
corporation and provides services to micro, small and medium sized
enterprises, farmers, and individuals, who are currently
underserved by commercial banks in China. Headquartered in Urumqi, the capital of
Xinjiang Autonomous Region, with a registered capital of
$94.7 million (RMB 600 million) as of June 30, 2018 China
Lending is one of the largest direct lending companies in the
region in terms of registered capital. For more information, please
visit: www.chinalending.com.
Forward-Looking Statements
This press release may include forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that China Lending
expects or anticipates will or may occur in the future are
forward-looking statements and are identified with, but not limited
to, words such as "may," "believe" and "expect." These statements
are based on certain assumptions and analyses made by China Lending
in light of its experience and its perception of historical trends,
current conditions and expected future developments as well as
other factors it believes are appropriate in the circumstances.
Actual results may differ materially from those expressed herein
due to many factors such as, but not limited to, (1) the ability to
obtain or maintain the listing of the Company's securities on the
NASDAQ Capital Market; (2) the ability to recognize
the anticipated benefits of our business combination;
(3) the outcome of any legal proceedings that may be
instituted against the Company; (4) changes in
applicable laws or regulations; (5) the possibility
that the Company may be adversely affected by other economic,
business, and/or competitive factors; and (6) other
risks and uncertainties indicated from time to time in the proxy
statement filed by the Company in connection with the business
combination, including those under "Risk Factors" therein, and
other factors identified in the Company's prior and future filings
with the SEC, available at www.sec.gov.
These forward-looking statements are based on information
available as of the date of this press release and involve a number
of judgments, risks and uncertainties. Accordingly, forward-looking
statements should not be relied upon as representing our views as
of any subsequent date and the Company undertakes no obligation to
update any forward-looking statements contained herein to reflect
events or circumstances which arise after the date of this press
release, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
law.
For investors and media inquiries please contact:
At the Company:
Katrina Wu
Email: wuxiaoqing@chinalending.com
Phone: +86-991-316-9617
Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1-732-910-9692
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SOURCE China Lending Corporation