Beijing Baifen Tonglian Information & Technology Co., Ltd. cancelled the acquisition of ZOOM Technologies, Inc. (NasdaqCM: ZOOM) in a reverse merger transaction.
January 04, 2014 at 04:00 am
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Beijing Baifen Tonglian Information & Technology Co., Ltd. entered into a letter of intent to acquire ZOOM Technologies, Inc. (NasdaqCM:ZOOM) in a reverse merger transaction on November 21, 2013. 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 letter of intent also provides that during the exclusivity period, which will commence on January 6, 2014 and will end as of the earlier of May 31, 2014 or the time all parties agree in writing that they no longer desire to pursue the proposed transaction or execution of a definitive agreement, if either party withdraws from the proposed transaction, such party may owe the other party a $3 million dollar break-up fee, subject to certain conditions. The transaction is subject to shareholders approvals by both parties and other closing conditions.
Beijing Baifen Tonglian Information & Technology Co., Ltd. cancelled the acquisition of ZOOM Technologies, Inc. (NasdaqCM: ZOOM) in a reverse merger transaction on January 4, 2014. The termination was made within the 45 day "Shop Period". ZOOM Technologies, Inc independent board members voted in favor of entering into a letter of intent with Tinho Union Holding Group instead of proceeding with the transaction with Baifen because the terms and conditions offered by Tinho's shareholders were considered superior to those offered by Beijing Baifen Tonglian Information & Technology Co., Ltd.
Zoom Technologies, Inc. (Zoom) is a holding company and owns subsidiaries, primarily engaged in technology and communications businesses in China. The Company owns Gold Lion Holding Limited, and through it, owns 100% of Profit Harvest Corporation Ltd, which further owns 100% of Celestial Digital Entertainment, Ltd., a mobile platform video game development company. The Company, through Gold Lion's wholly owned subsidiary, Jiangsu Leimone Electronics Co. Ltd (Jiangsu Leimone), owns 80% of Tianjin Tong Guang Group Digital Communication Co., Ltd (TCB Digital). Both TCB Digital and Jiangsu Leimone are in the business of manufacturing, research and development, and sales of electronic components for third generation mobile phones, wireless communication circuitry, GPS equipment, and related software products.
Beijing Baifen Tonglian Information & Technology Co., Ltd. cancelled the acquisition of ZOOM Technologies, Inc. (NasdaqCM: ZOOM) in a reverse merger transaction.