XI'AN, CHINA / ACCESSWIRE / January 30, 2018 / Kingtone Wirelessinfo Solution Holding Ltd. (KONE) ("Kingtone," or the "Company"), a China-based developer and provider of mobile enterprise solutions, today announced the Company and C Media Limited ("C Media"), a corporation organized under the laws of the Cayman Islands and one of the leading mobile service and technology providers of long distance travel including the railway Wi-Fi market in China, have entered into an Asset Exchange Agreement (the "Agreement") to acquire all of the assets of C Media in exchange for essentially all the assets of the Company ("the Asset Exchange"). The assets to be exchanged by the Company consists of the equity interests of the Company in its principal operating subsidiary. The assets of C Media consisting primarily of the equity interests of C Media's operating subsidiaries in China. The Asset Exchange was based on the valuation reports of both C Media and the Company made by an independent third-party appraisal firm. The Company also agreed to pay the difference of the fair market values between C Media and the Company by issuance of 185,412,599 ordinary shares and 1,000,000 preferred shares of the Company to C Media. The preferred shares to be issued by the Company are expected to have an initial per share voting weight of 399 votes to the major shareholders of C Media. The details of the Asset Exchange can be found in the Company's Form 6-K and its exhibits filed with SEC on the same date.
The Asset Exchange is subject to the satisfaction or waiver (if applicable) of closing conditions, including shareholders' approvals and Nasdaq approval.
About C Media Limited
C Media Limited is one of the leading mobile service and technology providers of long-distance travel and the pioneer and leader of the railway Wi-Fi market in China. C Media's core mobile application product Luokuang is made as a Location-based Service (LBS) social contents and service distribution platform. Luokuang obtains travel users through the typical entrance for long-distance travel. It accesses long-distance travel users continually by offering free Wi-Fi services by system deployed on the train. As of the end of 2017, C Media has signed contracts to deploy Luokuang on about 700 trains which subsequently has access to approximately 500 million passenger trips per year. The number of trains currently in operation with Luokuang by C Media is 286, which covers about 200 million passenger trips per year. As the end of 2017, users for Luokuang were 38 million, which expects to reach to more than 60 million by the end of 2018.C Media also engages in the development of blockchain technology to further optimize its application of user experience.
More information may be found at http://www.cmmobi.com.
About Kingtone Wirelessinfo Solution Holding Ltd.
Kingtone Wirelessinfo Solution Holding Ltd. (Nasdaq CM: KONE) is a China-based developer and provider of mobile enterprise solutions. The Company's products, known as mobile enterprise solutions, extend a company's or enterprise's information technology systems to include mobile participants. The Company develops and implements mobile enterprise solutions for customers in a broad variety of sectors and industries, to improve efficiencies by enabling information management in wireless environments. At the core of its many diverse packaged solutions is proprietary middleware that enables wireless interactivity across many protocols, devices, and platforms.
For more information, please visit Kingtone's website at http://en.kingtoneinfo.com/. The Company routinely posts important information on its website.
Safe Harbor Statements
This news release 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 can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook," and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, 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, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. 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.
For investor and media inquiries, please contact:
Mr. Fang Wang
SOURCE: Kingtone Wirelessinfo Solution Holding Ltd.