BEIJING, Dec. 31, 2013 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc. (Nasdaq:ZOOM) ("Zoom" or the "Company") announced it has agreed to the assignment by Beijing Zhumu Culture Communication Company, Ltd. ("Zhumu") to Tianjin Huatianli Trading Co., Ltd. ("Huatianli") for the right to purchase the Company's interest in Tianjin Tongguang Group Digital Communication Company, Ltd. ("TCBD").
On December 31, 2012, Zoom entered into a Share Purchase Agreement (the "Share Purchase Agreement") with Zhumu for the sale of certain of the Company's China-based operations, including its wholly owned subsidiaries Ever Elite Corporation Limited ("Ever Elite"), Beijing Nollec Wireless Company ("Nollec"), Profit Harvest Corporation, Ltd. ("Profit Harvest"), Celestial Digital Entertainment, Ltd. ("CDE"), and 80% ownership of TCBD. The aggregate purchase price for the sale of these operations was RMB200 million (the "Purchase Price").
To date, Zhumu has finalized its acquisition of Ever Elite, Nollec, Profit Harvest, and CDE. On December 30, 2013, Zhumu assigned its purchase right of TCBD to a new purchaser, Huatianli.
On December 30, 2013, Zoom consented to the assignment between Zhumu and Huatianli and agreed to amend the Share Purchase Agreement to reflect the change. In connection with the assignment, RMB120 million, representing the balance of the Purchase Price that was being held in escrow pending the closing of all of the sales under the Share Purchase Agreement, was going to be released within 10 business days to a Company-designated bank account. Of that amount, approximately RMB 68 million is available for the Company's immediate use, and approximately RMB52 million, representing the purchase price for TCBD, will be monitored by Huatianli until the closing of the TCBD sale.
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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