Zoom Technologies Inc. to Acquire Beijing Baifen Tonglian Information &
Technology Co., Ltd.
BEIJING, Nov. 27, 2013 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc.
(Nasdaq:ZOOM) (the "Company") is a technology holding company focused on the
mobile telecommunications and technology space. On November 21, 2013, the
Company entered into a Letter of Intent (the "LOI") with Beijing Baifen
Tonglian Information & Technology Co., Ltd. ("Baifen") to acquire, directly or
indirectly, all the outstanding shares of Baifen. In connection with this
transaction, Zoom will issue to Baifen's shareholders 12 million new shares of
the Company's common stock representing approximately 80% of Zoom's ownership
interest post-transaction. The transaction is subject to shareholders
approvals by both parties and other closing conditions. The LOI also provides
that during the exclusivity period, which will commence on January 6, 2014 and
will end as of the earlier of (i)(x) May 31, 2014 or (y) the time all parties
agree in writing that they no longer desire to pursue the proposed transaction
or (ii) execution of a definitive agreement, if either party withdraws from
the proposed transaction, such party may owe the other party a US$3 million
dollar break-up fee, subject to certain conditions. There is no assurance that
the proposed transaction will be consummated.
Baifen is one of China's leading providers of mobile advertising services. It
is one of the leaders in one-stop enterprise mobile marketing platforms and
services that include: applications, mobile name cards, QR codes, text and
multimedia messages, and WeChat/Weibo platforms for corporate
accounts.Baifen's sales network consists of both channel sales and direct
sales.Baifen's channel network includes over 400 partners and Baifen's
customer base includes certain Fortune 500 enterprises.
Mr. Lei Gu, Chairman and CEO of Zoom had the following to say about the
anticipated transaction. "We have searched long and hard for fast growing
businesses that can maximize value for Zoom's shareholders. We believe we have
finally found the right match. Baifen has a good business model with
sustainable growth. We can grow Zoom's business together with Baifen. Baifen
has enviable margins and a scalable business. We are truly excited for the
shareholders of Zoom. Baifen has a clear vision to maintain its position as a
top player in the mobile advertising space. "
For further details and updates regarding this transaction, please visit
Zoom's website: http://www.zoom.com.
Certain statements in this press release may constitute "forward looking
statements" that involve risks and uncertainties. These include statements
about our plans, objectives, assumptions or future events in which the outcome
cannot be assured. You should not place undue reliance on these
forward-looking statements. Information concerning factors that could cause
our actual results to differ materially from these forward-looking statements
can be found in our periodic reports filed with the Securities and Exchange
Commission. We undertake no obligation to publicly release revisions to these
forward-looking statements to reflect future events or circumstances or
reflect the occurrence of unanticipated events.
CONTACT: Investor Contact:
Zoom Technologies, Inc.
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