omniture

QKL Stores Inc. to Lease Building for New Headquarters; Cancels Building Purchase Agreement

2010-07-02 03:14 2233

DAQING, China, July 2 /PRNewswire-Asia/ -- QKL Stores Inc. ("QKL" or the "Company") (Nasdaq: QKLS), a leading regional supermarket chain in Northeastern China, today announced the Company has cancelled its building purchase agreement with Xiandong Zhang ("the Seller") for its new headquarters in Daqing, China.

Under the original agreement which occurred on December 30, 2009, QKL agreed to pay RMB 75 million (approximately $11.0 million) to purchase a five story, 4,897 sq. meter building in Daqing to replace the Company's existing headquarters which the Company has outgrown.

The building purchase agreement was terminated because the Seller was unable to complete the property transfer procedures of the PRC, which required the delivery of a Property Ownership Certificate and Land Use Right Certificate within 60 days of the execution of the Purchase Agreement. The Seller was also unable to register the property ownership in the name of QKL which was required under the Purchase Agreement. The Termination Agreement provides that since the Seller breached the Purchase Agreement, the RMB 75 million (US $11.0 million) purchase price is to be refunded to the Company. The purchase price was refunded to the Company on June 28, 2010.

The Company has reached an agreement with Xiandong Zhang to lease this same building facility, which is intended to accommodate future growth of the Company's administrative and operations personnel as it implements its supermarket expansion plan. The Company may also use the building as a supermarket premises. Under the lease agreement, the Company took possession of the premises on June 28, 2010, and plans to move into the facility by the end of July. The Company intends to convert its existing headquarters' office building into training facilities.

More information about the lease terms can be found in [today's filing] with the SEC.

About QKL Stores Inc.:

Based in Daqing, China, QKL Stores, Inc. is a leading regional supermarket chain company operating in Northeastern China. QKL Stores sells a broad selection of merchandise, including groceries, fresh food, and non-food items, through its retail supermarkets, hypermarkets and department stores; the company also has its own distribution centers that service its supermarkets. For more information, please access the Company's website at: http://www.qklstoresinc.com .

Safe Harbor Statement

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

For further information, please contact:

QKL Stores Inc.

Mike Li, Investor Relations

Tel: +86-459-460-7987

ICR, Inc.

In U.S.:

Bill Zima

Tel: +1-203-682-8200

In China:

Yuening Jiang

Tel: +86-10-6599-7965

Source: QKL Stores Inc.
Related Stocks:
NASDAQ:QKLS
Keywords: Retail
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