CNinsure to Expand New Share Issue to Employees
December 12 2014 - 5:34AM
CNinsure Inc. ("CNinsure" or the "Company") (Nasdaq:CISG), a
leading independent insurance intermediary company in China, today
announced that it has obtained approval from the Board of Directors
to increase the new share issue to employees from up to 100,000,000
ordinary shares to 150,000,000 ordinary shares, representing
approximately 15% of the Company's current total outstanding share
capital. The purchase price for the 100,000,000 ordinary shares is
$0.27 per ordinary share or $5.4 per ADS, while that for the
additional 50,000,000 ordinary shares is $0.29 per ordinary share
or $5.8 per ADS, both of which are the average closing prices for
the 20 trading days prior to the board approvals. Completion of the
share issuances to the employees is subject to customary closing
conditions.
"The new share issue was enthusiastically received by our
employees, as reflected by the significant oversubscription.
Therefore, we have decided to expand the size of the new share
issue to meet the excess demand." Mr. Chunlin Wang, the chief
executive officer of CNinsure commented, "the strong demand shows a
strong vote of confidence in the Company. We reaffirm our
commitment to delivering long term sustainable growth for the
benefit of all our shareholders."
About CNinsure Inc.
CNinsure is a leading independent intermediary company operating
in China. CNinsure's distribution network reaches many of China's
most economically developed regions and affluent cities. The
Company distributes a wide variety of property and casualty and
life insurance products underwritten by domestic and foreign
insurance companies operating in China, and provides insurance
claims adjusting as well as other insurance-related services.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about CNinsure and the industry.
Potential risks and uncertainties include, but are not limited to,
those relating to CNinsure's limited operating history, especially
its limited experience in selling life insurance products, its
ability to attract and retain productive agents, especially
entrepreneurial agents, its ability to maintain existing and
develop new business relationships with insurance companies, its
ability to execute its growth strategy, its ability to adapt to the
evolving regulatory environment in the Chinese insurance industry,
its ability to compete effectively against its competitors, and
macroeconomic conditions in China and their potential impact on the
sales of insurance products. All information provided in this press
release is as of the date hereof, and CNinsure undertakes no
obligation to update any forward-looking statements. Although
CNinsure believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that its expectations will turn out to be correct, and investors
are cautioned that actual results may differ materially from the
anticipated results. Further information regarding risks and
uncertainties faced by CNinsure is included in CNinsure's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 20-F.
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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