Antelope Enterprise Announces Agreement to Divest of its Ceramic Tile Business
Company Transforming into a Pure Play in the Social Ecommerce Market in China
JINJIANG, China, Jan. 5, 2023 /PRNewswire/ -- Antelope Enterprise Holdings Limited (NASDAQ Capital Market: AEHL) ("Antelope Enterprise" or the "Company"), which operates KylinCloud, a leading online social ecommerce and live broadcast streaming platform with 200,000+ anchors and influencers, and a legacy ceramic tile manufacturing business in China, today announced that on December 30, 2022, it entered into a share purchase agreement (the "Disposition SPA") to divest of its ceramic tile manufacturing business.
"We are pleased to enter into this agreement which will enable us to to focus all of our resources and energies on China's high growth social ecommerce sector," commented Antelope Enterprise CEO Weilai 'Will' Zhang. "The ceramic tile business has faced significant hurdles due to the significant slowdown of the real estate sector and the impacts of Covid-19 in China. Meanwhile, we have been experiencing strong growth momentum in KylinCloud, our social ecommerce business. Therefore, this divesture represents an important step for our strategic transformation to focus on developing the social ecommerce market, expanding our new ecommerce team and further strengthening our already dynamic corporate culture."
"Our KylinCloud subsidiary operates an SaaS+ systems platform that promotes and amplifies marketing sales for consumer brand companies by leveraging the platform's growing list of broadcasters and influencers. We believe that our core competencies and competitive advantage will enable us to capitalize upon the projected high growth of China's social ecommerce and live streaming sector for years to come," concluded CEO Will Zhang.
On December 30, 2022, the Company and New Stonehenge Limited (the "Buyer"), a British Virgin Islands exempt company which is not an affiliate of the Company or any of its directors or officers, entered into a Disposition SPA. Pursuant to the Disposition SPA, the Buyer agreed to purchase the Company's ceramic tile business, and in exchange the Buyer will issue a 5% unsecured promissory note (the "Note") to the Company with the principal amount of $8.5 million and a maturity date that is the fourth anniversary of its issuance. The 5% interest and the principal amount on the Note is to be paid in four annual installments according to the schedule as set forth in the Note. Upon the closing of the transaction contemplated by the Disposition SPA, the Buyer will become the sole shareholder of the Company's ceramic tile business and, as a result, assume all of its assets and liabilities and those of its subsidiaries.
The closing of the Disposition SPA is subject to the satisfaction or waiver of certain closing conditions including the receipt of a fariness opinion from an independent firm, approval of a majority of the Company's shareholders, and all consents required to be obtained from or made with any governmental authorities.
More complete information of the Disposition SPA is set forth in the Form 6-K and its exhibits filed with the Securities and Exchange Commission on January 5, 2023.
About Antelope Enterprise Holdings Limited
Antelope Enterprise Holdings Limited holds a 51% ownership position in Hainan Kylin Cloud Services Technology Co., Ltd ("KylinCloud"), which operates a leading online social ecommerce and live broadcast streaming platform with 200,000+ anchors and influencers, and the Company also operates a legacy ceramic tile manufacturing business in China.
For more information, please visit our website at http://www.aehltd.com, or follow the Company on Twitter at https://twitter.com/aehl_ltd. To receive the Company's public announcements, please email email@example.com.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, without limitation, the continued stable macroeconomic environment in the PRC, the PRC real estate, construction and technology sectors continuing to exhibit sound long-term fundamentals, our ability to bring additional ceramic tile production capacity online going forward as our business improves, our ceramic tile customers continuing to adjust to our product price increases, our ability to sustain our average selling price increases and to continue to build volume in the quarters ahead, and whether our enhanced marketing efforts will help to produce wider customer acceptance of the new price points; and our ability to continue to grow our business management, information system consulting, and online social commerce and live streaming business. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2021 and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
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SOURCE Antelope Enterprise Holdings Ltd.