Company Transforming into a Pure Play in the
Social Ecommerce Market in China
JINJIANG, China, Jan. 5, 2023
/PRNewswire/ -- Antelope Enterprise Holdings Limited (NASDAQ
Capital Market: AEHL) ("Antelope Enterprise" or the "Company"),
which operates KylinCloud, a leading online social ecommerce and
live broadcast streaming platform with 200,000+ anchors and
influencers, and a legacy ceramic tile manufacturing business in
China, today announced that on
December 30, 2022, it entered into a
share purchase agreement (the "Disposition SPA") to divest of its
ceramic tile manufacturing business.
"We are pleased to enter into this agreement which will enable
us to to focus all of our resources and energies on China's high growth social ecommerce sector,"
commented Antelope Enterprise CEO Weilai 'Will' Zhang. "The ceramic
tile business has faced significant hurdles due to the significant
slowdown of the real estate sector and the impacts of Covid-19 in
China. Meanwhile, we have been
experiencing strong growth momentum in KylinCloud, our social
ecommerce business. Therefore, this divesture represents an
important step for our strategic transformation to focus on
developing the social ecommerce market, expanding our new ecommerce
team and further strengthening our already dynamic corporate
culture."
"Our KylinCloud subsidiary operates an SaaS+ systems platform
that promotes and amplifies marketing sales for consumer brand
companies by leveraging the platform's growing list of broadcasters
and influencers. We believe that our core competencies and
competitive advantage will enable us to capitalize upon the
projected high growth of China's
social ecommerce and live streaming sector for years to come,"
concluded CEO Will Zhang.
On December 30, 2022, the Company
and New Stonehenge Limited (the "Buyer"), a British Virgin Islands exempt company which is
not an affiliate of the Company or any of its directors or
officers, entered into a Disposition SPA. Pursuant to the
Disposition SPA, the Buyer agreed to purchase the Company's ceramic
tile business, and in exchange the Buyer will issue a 5% unsecured
promissory note (the "Note") to the Company with the principal
amount of $8.5 million and a maturity
date that is the fourth anniversary of its issuance. The 5%
interest and the principal amount on the Note is to be paid in four
annual installments according to the schedule as set forth in the
Note. Upon the closing of the transaction contemplated by the
Disposition SPA, the Buyer will become the sole shareholder of the
Company's ceramic tile business and, as a result, assume all of its
assets and liabilities and those of its subsidiaries.
The closing of the Disposition SPA is subject to the
satisfaction or waiver of certain closing conditions including the
receipt of a fariness opinion from an independent firm, approval of
a majority of the Company's shareholders, and all consents required
to be obtained from or made with any governmental authorities.
More complete information of the Disposition SPA is set forth
in the Form 6-K and its exhibits filed with the Securities and
Exchange Commission on January 5,
2023.
About Antelope Enterprise Holdings Limited
Antelope Enterprise Holdings Limited holds a 51% ownership
position in Hainan Kylin Cloud Services Technology Co., Ltd
("KylinCloud"), which operates a leading online social ecommerce
and live broadcast streaming platform with 200,000+ anchors and
influencers, and the Company also operates a legacy ceramic tile
manufacturing business in China.
For more information, please visit our website at
http://www.aehltd.com, or follow the Company on Twitter at https://twitter.com/aehl_ltd.
To receive the Company's public
announcements, please email investor@aehltd.com.
Safe Harbor Statement
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements with respect to our
beliefs, plans, objectives, goals, expectations, anticipations,
assumptions, estimates, intentions, and future performance, and
involve known and unknown risks, uncertainties and other factors,
which may be beyond our control, and which may cause the actual
results, performance, capital, ownership or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking
statements. Forward-looking statements in this press release
include, without limitation, the continued stable macroeconomic
environment in the PRC, the PRC real estate, construction and
technology sectors continuing to exhibit sound long-term
fundamentals, our ability to bring additional ceramic tile
production capacity online going forward as our business improves,
our ceramic tile customers continuing to adjust to our product
price increases, our ability to sustain our average selling price
increases and to continue to build volume in the quarters ahead,
and whether our enhanced marketing efforts will help to produce
wider customer acceptance of the new price points; and our ability
to continue to grow our business management, information system
consulting, and online social commerce and live streaming business.
All statements other than statements of historical fact are
statements that could be forward-looking statements. You can
identify these forward-looking statements through our use of words
such as "may," "will," "anticipate," "assume," "should,"
"indicate," "would," "believe," "contemplate," "expect,"
"estimate," "continue," "plan," "point to," "project," "could,"
"intend," "target" and other similar words and expressions of the
future.
All written or oral forward-looking statements attributable
to us are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties described in our annual report on Form 20-F for the
year ended December 31, 2021 and
otherwise in our SEC reports and filings. Such reports are
available upon request from the Company, or from the Securities and
Exchange Commission, including through the SEC's Internet website
at http://www.sec.gov. We have no obligation and do not undertake
to update, revise or correct any of the forward-looking statements
after the date hereof, or after the respective dates on which any
such statements otherwise are made.
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SOURCE Antelope Enterprise Holdings Ltd.