BEIJING and URUMQI,
China, June
17, 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 in China, today
announced that it has entered into a share purchase agreement (the
"Share Purchase Agreement") to acquire 65.0177% equity interests in
Lixin Financial Holdings Group Limited ("Cayman Lixin"), a company
incorporated under the laws of Cayman
Islands.
Cayman Lixin indirectly holds 99% equity interests in Zhejiang
Lixin Enterprise Management Holding Co., Ltd. ("Zhejiang Lixin").
Founded in 2013, Zhejiang Lixin is a financial service company
focusing on providing a wide range of financing solutions and
related peripheral services, including financial leasing,
factoring, private funding, financing guarantee and supply chain
management, to individuals and micro, small and medium sized
enterprises in the Yangtze River Delta Region in China. Pursuant to the Share Purchase
Agreement, the Company will acquire 65.0177% equity interests in
Cayman Lixin from certain selling shareholders of Cayman Lixin for
a total consideration of RMB276,000,000, which shall be satisfied by the
Company's issuing its ordinary shares to such selling shareholders,
as calculated by dividing the amount of consideration that such
selling shareholder is entitled to as set forth in the Share
Purchase Agreement by the average closing price per share of the
ordinary shares on the Nasdaq Capital Market for thirty (30)
consecutive trading days prior to the closing of the
transaction.
The Company has decided to follow its home country practice and
elected to be exempted from the shareholder approval requirement
under the applicable rules of the NASDAQ Stock Market for the
proposed transaction.
The Company expects to complete the transaction in August 2019, subject to the satisfaction to, or
waiver by, the parties to the Share Purchase Agreement of customary
closing conditions and the completion of relevant corporate and
regulatory procedures. Pursuant to the Share Purchase Agreement,
the Company may acquire the remaining 34.9823% equity interests in
Cayman Lixin, subject to the satisfaction of certain conditions as
set forth therein, which include, among others, the completion of
the future financing by the Company.
Ms. Jingping Li, Chairwoman and
Chief Executive Officer of China Lending, commented, "We believe
that the acquisition of equity interest in Lixin will help to
enhance the quality of our assets and optimize our existing
business structure of providing loan facilities to micro, small and
medium sized enterprises in Xinjiang Autonomous Region and other
areas in China. By leveraging
Lixin's capabilities in various financial services, credit
facilities in banks and non-bank institutions, nationwide network
of markets and resources, as well as capabilities in the research
and development of financial product innovation, we expect to
enhance our market competitiveness and increase our market value.
Ultimately, we believe this will help us to transform into a
profitable and well-diversified financial services company. We also
expect to achieve our strategic goals in supply chain finance and
consumer finance markets, extending our geographical outreach to
cover the major economically developed regions in China and gradually extending to overseas
markets."
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. 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.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among others, the consummation of the proposed transaction, and can
be identified by terminology such as "may," "will," "expect,"
"anticipate," "aim," "estimate," "intend," "plan," "believe,"
"potential," "continue," "is/are likely to" or other similar
expressions. Such statements are based upon management's current
expectations of the consummation of the proposed transaction, and
relate to events that involve known or unknown risks, uncertainties
and other factors, all of which are difficult to predict and many
of which are beyond the Company's control. Further information
regarding these and other risks, uncertainties or factors is
included in the Company's filings with the U.S. Securities and
Exchange Commission. The Company does not undertake any obligation
to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
law.
IR Contact:
At the Company:
Katrina Wu
Email: wuxiaoqing@chinalending.com
Phone: +86-991-316-9617
Investor Relations:
Robin
Yang
ICR
Email: Robin.Yang@icrinc.com
Phone: +86 158-8929-2733
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SOURCE China Lending Corporation