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.
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