VisionChina Media, Oak and Gobi Jointly Announce Closing of Litigation Settlement.
VisionChina Media Inc. , Oak Investment Partners XII, Limited Partnership, Gobi Partners, Inc. n/k/a Gobi Ventures, Inc., Gobi Fund, Inc. and Gobi Fund II, L.P. and Shareholder Representative Services, LLC (collectively with Oak and Gobi, the “Selling Shareholders”) and Thomas GaiTei Tsao, today jointly announced the closing of the settlement agreement of all litigations arising from VisionChina Media’s November 16, 2009 acquisition of Digital Media Group Company Limited from the Selling Shareholders.
Under the terms of the settlement agreement, VisionChina Media agrees pay to the Selling Shareholders an aggregate amount of US$70 million, including US$12 million in cash and US$58 million in six-year term convertible promissory notes issued by VisionChina Media, in addition to certain other consideration to satisfy the judgment of US$71,800,047.46 entered in the 2011 Action on or about July 26, 2013.
By the date of this joint press release, all claims in these pending lawsuits have been dismissed and all closing conditions of the settlement agreement have been met.
“The closing of the settlement agreement brings to an end a long and arduous process, but one which saw all parties work closely together in good faith efforts to help VisionChina Media move forward while positioning the company for future success,” said Mr. Limin Li, VisionChina Media’s chairman and chief executive officer. “Oak and Gobi are leading venture capital firms with established track records investing in home-grown innovation and the next generation of disruptive growth companies emerging from IT, TMT convergence and the digital media revolution in China. Their involvement going forward as major shareholders of VisionChina Media reflects their recognition of the long-term value potential of our company. Along with expected improvements in the operating performance of our traditional digital mobile television business, we are vigorously implementing our mobile internet strategy by establishing a national public transportation WIFI network across our leading out-of-home advertising network. We are optimistic that the settlement agreement with, and counsel from, Oak and Gobi will allow us to focus on our ongoing efforts to enhance our competitive strengths to bring long-term value to our shareholders.”
Oak and Gobi commented, “VisionChina Media has worked to improve its operating leverage and performance in recent years and is positioning itself to capitalize on emerging trends in China’s digital out-of-home media market. We are pleased to have closed the settlement agreement and look forward to supporting the company as large shareholders.”