NEW YORK, March 25, 2015 /PRNewswire/ -- Sino-Global
Shipping America, Ltd. (NasdaqCM: SINO) ("Sino-Global" or the
"Company"), a shipping agency, logistics and ship management
services company, today announced that it has signed a Letter of
Intent (the "LOI") to acquire a small oil/chemical tanker (the
"Vessel") from Rong Yao International Shipping Limited, a
Hong Kong corporation (the "Vessel
Seller"). The LOI updates the Memorandum of Understanding (the
"MOU") that was entered into by and between the Company and the
Vessel Seller in January 2015. Since
the signing of the MOU and the filing of its Current Report on Form
8-K with the Securities and Exchange Commission on January 26, 2015, Sino-Global has been
undertaking its due diligence of the Vessel and continuing its
negotiations with the Vessel Seller on, among other items, closing
conditions, the purchase price, post-closing purchase price
adjustments and the form of payment of the purchase price.
Pursuant to the terms of the LOI, the Company and the Vessel Seller
have agreed generally that, upon and subject to the closing of the
proposed acquisition of the Vessel, Sino-Global will issue 1.2
million shares of its common stock to the Vessel Seller as partial
payment of the Vessel purchase price. The parties further agreed
that such payment should be valued at $2.22
million, with each share of the Company's common stock being
valued at $1.85.
The Company intends to finance the Vessel acquisition through
the issuance of its securities to the Vessel Seller and bank
borrowings. The purchase of the Vessel shall be made pursuant to
the terms and conditions of a definitive vessel purchase agreement
that is being negotiated between the Company and the Vessel Seller,
subject to financing, board and regulatory approvals and customary
closing conditions.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, indicated
that the Vessel Seller's willingness to accept $2.22 million of any purchase price agreed to by
the Company and the Vessel Seller through the issuance to the
Vessel Seller of 1.2 million shares of Sino-Global's common stock
at a 23% premium to the March 20,
2015 closing price of Sino-Global's common stock on the
Nasdaq Capital Market, is an important and significant validation
of the Vessel Seller's belief in the Company's strategic direction,
its growth potential and the ability of Sino-Global's seasoned
senior management team to execute its business plan."
After careful consideration of, among other factors, the Vessel
Seller's agreement to accept 1.2 million shares of Sino-Global's
common stock valued at $2.22 million,
the current market price of the Company's common stock, which the
Company's Board of Directors (the "Board") believes is undervalued,
and the Board's continued focus on protecting and increasing
shareholder value and making decisions in what it believes to be
the best interest of the Company's shareholders, the Company has
determined to terminate its current securities offering.
About Sino-Global Shipping America, Ltd.
Founded in the United States of
America in 2001, Sino-Global Shipping America, Ltd. is a
shipping agency, logistics and ship management services company. We
are headquartered in New York with
offices in Mainland
China, Australia, Canada and Hong
Kong. Our current service offerings consist of shipping
agency services, shipping and chartering services, inland
transportation management services and ship management services.
For more information, please visit: www.sino-global.com.
Forward Looking Statements
No statement made in this press release should be interpreted
as an offer to purchase any security. Such an offer can only be
made in accordance with the Securities Act of 1933, as amended, and
applicable state securities laws. Any statements contained in this
release that relate to future plans, events or performance are
forward-looking statements that involve risks and uncertainties as
identified in Sino-Global's filings with the Securities and
Exchange Commission. Actual results, events or performance may
differ materially. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
the date hereof. Sino-Global undertakes no obligation to publicly
release the results of any revisions to these forward-looking
statements that may be made to reflect the events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
For more information, please contact:
Mr. Anthony S. Chan, CPA
EVP & Acting CFO
+1-718-888-1814
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SOURCE Sino-Global Shipping America, Ltd.