SHANGHAI, May 28, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) (the "Company") today announced that its Board of Directors has commenced a comprehensive review of strategic alternatives to maximize shareholder value, which could result in a merger or sale of the Company or other transaction involving the Company or its assets. XRF is engaged in formal discussions with several parties that have expressed interest in a potential transaction.
The Company cautions that there can be no assurance that any transaction will be approved or consummated. The Company does not intend to disclose developments relating to its strategic review unless and until the Board of Directors has approved a specific agreement or transaction or has terminated its review of strategic alternatives.
Zane Wang, Founder and Co-Chief Executive Officer said, "The current regulatory environment for P2P lending platforms is creating substantial challenges, both for XRF and the industry as a whole. Many industry participants are considering partnerships, mergers, and other alternatives to bolster their businesses and ensure their long-term viability. We too are engaged in formal discussions that we believe can result in a strengthening of our competitive position."
The Company reiterated that it will continue to endeavor to file its Annual Report and restated quarterly reports in a timely manner. Also, the Company intends to return to compliance with the New York Stock Exchange ("NYSE") Continued Listing requirement by curing the stock price deficiency within the applicable cure period. As required, the Company has notified the NYSE of its intent to cure. During this period, the Company's American Depositary Shares will continue to be traded on the NYSE, subject to compliance with other NYSE continued listing requirements. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company's material agreements.
About China Rapid Finance Limited
China Rapid Finance (XRF) is a leading fintech company that operates an award-winning microcredit company and one of China's largest online consumer finance marketplaces. The Company enables affordable access to digital credit for one of the world's largest untapped consumer credit markets: China's mobile-active consumers. The Company utilizes its proprietary, mobile-first technology to select consumers for its platform. China Rapid Finance was founded by Dr. Zane Wang, who has decades of consumer credit industry experience in the U.S. and China. For more information, please visit http://ir.crfchina.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to file its Annual Report in a timely manner or regain compliance with NYSE continued listing standards, adjustments to prior period financial statements, unexpected difficulties in the Company's pursuit of its goals and strategies; the unexpected developments, including slow growth, in the consumer lending market; reduced demand for, and market acceptance of, the Company's products and services; difficulties keeping and strengthening relationships with borrowers or investors; difficulties of expanding data and channel partnerships, potentially costly servicing activities; competition in the consumer lending market; PRC governmental regulations and policies; and general economic and business conditions in the regions where the Company provides products and services. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this announcement and in the attachments is as of the date of this announcement, and the Company undertakes no duty to update such information except as required under applicable law.
Investor Relations Contact:
The Blueshirt Group
Gary T. Dvorchak, CFA