- Sun Seven Stars (SSS) to contribute 67% to the capitalization of the Holding Company
- As part of the capitalization, SSS will also transfer all of its current and any future WCST stock holdings to the Holding Company
- Guizhou Guibao Investment Fund (GGIF) to contribute 33% to the capitalization of the Holding Company (SSS is a 10% limited partner in GGIF)
- As part of its objective, Holding Company will conduct open market purchases of WCST stock
Wecast Network, Inc. (NASDAQ: WCST) ("Wecast" or the "Company" or "WCST"), announced today on behalf of Sun Seven Stars Media Group ("Sun Seven Stars"), the creation of a 3 Billion RMB ($437 million USD) holding company (the "Holding Company"), 67% capitalized by Sun Seven Stars and 33% capitalized by Guizhou Guibao Investment Fund ("GGIF"). Sun Seven Stars is also a 10% limited partner in GGIF.
The Holding Company, aside from being injected with Sun Seven Stars current and future WCST stock holdings, will additionally be funded with 1 billion RMB cash (approximately $146 million USD) in three phases: 300 million RMB (approximately $44 million USD) by the end of 2016; 400 million RMB (approximately $58 million USD) estimated by March 1, 2017; 300 million RMB (approximately $44 million USD) estimated by August.
The objective of the Holding Company will be to support and invest in, the future growth and business scope expansion of Wecast Network, Inc., exclusively. More specifically, the Holding Company will help finance the Company's growth as needed and in addition, will conduct WCST share purchases in the open market.
About Wecast Network, Inc. (http://corporate.yod.com)
Wecast Network, Inc. (NASDAQ: WCST) is leveraging and optimizing its current operations as a premium content Video On Demand service provider in China to evolve into a global, vertical, ubiquitous and transactional B2B2C, mobile-driven, consumer management platform for both enterprises and consumers. By aiming to establish the world's premier multimedia, social networking and smart e-commerce-enabled network with the largest global effective connected user base, Wecast, through this expanded, cloud-based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of WCST/YOD–branded products and services to enterprise customers and end-use consumers - anytime and anywhere, across multiple platforms and devices.
Wecast has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers. In addition, the Company has governmental partnerships and licenses as well as numerous JV partnerships and strategic cooperation agreements with an array of distribution and content partners in the global new media space. Wecast is headquartered in both New York, NY and Beijing, China.
About Bruno Wu and Sun Seven Stars
Bruno Wu is now the Founder, Co-Chairman and CEO of Sun Seven Stars Media Group Limited, one of the biggest private media and investment conglomerates in China. Its predecessor is Sun Media Group Holdings Limited, which was established by Bruno Wu and Yang Lan in 1999 and became one of the leading entertainment, media and investment companies in Asia after 10 years of growth. Sun Seven Stars Media Group Limited now has 7 business units including Sun Media Group, Sun Seven Stars Culture Group, Wecast Media Group, Sun Medical Group, Sun Art Group, Sun Medical Group and Redrock Capital Group. It has a presence in over ten major cities in the world including: Beijing, Shanghai, Tianjin, Hong Kong, New York, LA, Paris, London, Toronto, Seoul and Scandinavia countries.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Director Strategy & IR
Wecast Network, Inc.
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SOURCE Wecast Network, Inc.