VisionChina Media, Oak Investment and Gobi Partners Jointly Announce Closing of Litigation Settlement
BEIJING, July 25, 2014 /PRNewswire/ — VisionChina Media Inc. (“VisionChina Media” or the “Company”) (Nasdaq: VISN), Oak Investment Partners XII, Limited Partnership (“Oak”), Gobi Partners, Inc. n/k/a Gobi Ventures, Inc., Gobi Fund, Inc. and Gobi Fund II, L.P. (collectively “Gobi”) and Shareholder Representative Services, LLC (collectively with Oak and Gobi, the “Selling Shareholders”) and Thomas GaiTei Tsao, today jointly announced the closing of the settlement agreement of all litigations arising from VisionChina Media’s November 16, 2009 acquisition of Digital Media Group Company Limited from the Selling Shareholders.
Under the terms of the settlement agreement, VisionChina Media agrees pay to the Selling Shareholders an aggregate amount of US$70 million, including US$12 million in cash and US$58 million in six-year term convertible promissory notes issued by VisionChina Media, in addition to certain other consideration to satisfy the judgment of US$71,800,047.46 entered in the 2011 Action on or about July 26, 2013.
By the date of this joint press release, all claims in these pending lawsuits have been dismissed and all closing conditions of the settlement agreement have been met.
“The closing of the settlement agreement brings to an end a long and arduous process, but one which saw all parties work closely together in good faith efforts to help VisionChina Media move forward while positioning the company for future success,” said Mr. Limin Li, VisionChina Media’s chairman and chief executive officer. “Oak and Gobi are leading venture capital firms with established track records investing in home-grown innovation and the next generation of disruptive growth companies emerging from IT, TMT convergence and the digital media revolution in China. Their involvement going forward as major shareholders of VisionChina Media reflects their recognition of the long-term value potential of our company. Along with expected improvements in the operating performance of our traditional digital mobile television business, we are vigorously implementing our mobile internet strategy by establishing a national public transportation WIFI network across our leading out-of-home advertising network. We are optimistic that the settlement agreement with, and counsel from, Oak and Gobi will allow us to focus on our ongoing efforts to enhance our competitive strengths to bring long-term value to our shareholders.”
Oak and Gobi commented, “VisionChina Media has worked to improve its operating leverage and performance in recent years and is positioning itself to capitalize on emerging trends in China’s digital out-of-home media market. We are pleased to have closed the settlement agreement and look forward to supporting the company as large shareholders.”
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of March 31, 2014, VisionChina Media’s advertising network included 109,484 digital television displays on mass transportation systems in 19 of China’s economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency agreements or joint venture contract. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports, and other entertainment programming. For more information, please visit http://www.visionchina.cn.
About Oak Investment Partners
Oak Investment Partners is a multi-stage venture capital firm and a lead investor in the next generation of enduring growth companies. Since 1978, the firm has invested $9 billion in over 500 companies around the world, earning the trust of entrepreneurs with a senior team that delivers steady guidance, deep domain expertise and a consistent investment philosophy. The firm’s five major growth sectors of focus are information technology, Internet and consumer, financial services technology, healthcare services and clean energy. For more information, visit www.oakvc.com.
About Gobi Partners
Founded in 2002, Gobi Partners is a venture capital firm with its headquarters and incubation center in Shanghai and additional offices in Beijing, Guangzhou, Hong Kong, and Tianjin, as well as an overseas office in Singapore. A leading investor in early stage digital media and technology companies in Greater China, Gobi has funded dozens of early to traction stage companies and continues to invest actively in the region.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 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 can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. 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 applicable law.
For investor and media inquiries, please contact:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.