BEIJING, July 5, 2018 /PRNewswire/ -- China Commercial Credit, Inc. (NasdaqCM: CCCR) (the "Company"), a company currently engaged in used luxurious car leasing, is pleased to announce that it has entered into a non-binding Letter of Intent with the parent of Beijing Lexiang Technology Co., Ltd, a leader in the auto finance service in China.
According to the Letter of Intent, CCCR will acquire 100% of the outstanding shares of Lemon Green Inc. which through its subsidiaries controls Beijing Lexiang Technology Co., Ltd, ("Guolun") in exchange for such a number of shares of common stock of CCCR based on total enterprise value of Lemon Green.
Mr. Long Yi, the Chief Financial Officer and Director of CCCR stated: "CCCR is focused on finance and mobility. The acquisition is a key step by CCCR to explore the financial area. We expect the takeover to generate steady cash flow and create more shareholder value."
Mr. Jiaxi Gao, the Chief Executive Officer and Chairman of the Board of Lexiang commented: "The cooperation with CCCR will be a breakthrough for Guolun, also a milestone for Guolun. I'm very excited about our future."
Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of definitive share exchange agreement, the approval of the Company's Board of Directors and shareholders, receipt of a fairness opinion by the Company's Board of Directors, approval by NASDAQ of the post-transaction entity's new listing application, and the satisfaction of other customary closing conditions the negotiation of a definitive agreement providing for the transaction, satisfaction of the conditions negotiated therein including approval of the transaction by CCCR's stockholders and NASDAQ. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the Letter of Intent that describe the proposed transaction, including the consideration to be issued therein, are non-binding.
About China Commercial Credit
China Commercial Credit (http://www.chinacommercialcredit.com), currently is engaged in used luxurious car leasing business.
About Lexiang
Beijing Lexiang Technology Co., Ltd, established in March 2016 and headquartered in Beijing, is backed by a group of Chinese famous venture capitalists including Legend Star, K2VC, Plum Ventures. In November 2017, Lexiang was upgraded into Guolun, which is focused on automotive, financial information and Internet. By running "Che Dai Dai", an Internet-based financial information service platform, the company serves about 140 million drivers in China. Guolun owns about 20 outlets across China. As of the end of June, it has more than 18,000 registered users. Over the past one year, Guolun posted a transaction amount of more than RMB1.5 billion. By making use of its large database, Guolun has been stepping up efforts to stand out from China's more and more crowded auto finance market.
Forward-Looking Statements
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties once the transaction is complete, and CCCR's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections.
The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the occurrence of any event, change or other circumstances that could give rise to the terms of the Term Sheet not hereafter being memorialized in a definitive agreement; the outcome of any legal proceedings that have been, or will be, instituted against CCCR or other parties to the Term Sheet following announcement of the Term Sheet and transactions contemplated therein; the ability of CCCR to meet NASDAQ listing standards following the transaction and in connection with the consummation thereof; the inability to complete the transactions contemplated by the Term Sheet due to the failure to obtain approval of the stockholders of CCCR or other closing conditions to; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the announcement of the Term Sheet and consummation of the transaction described therein; costs related to the proposed acquisition; changes in applicable laws or regulations; the ability of the combined company to meet its financial and strategic goals, due to, among other things, competition, the ability of the combined company to grow and manage growth profitability, maintain relationships with customers and retain its key employees; the possibility that the combined company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC") by CCCR.
Additional information concerning these and other factors that may impact our expectations and projections can be found in our periodic filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. CCCR's SEC filings are available publicly on the SEC's website at www.sec.gov. CCCR disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.
Non-Solicitation
This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of CCCR or Wheat Capital Group., nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information about the Transaction and Where to Find It
In connection with the proposed transaction, CCCR will file a preliminary proxy statement with the SEC and will mail a definitive proxy statement and other relevant documents to its stockholders. Investors and security holders of CCCR are advised to read, when available, the preliminary proxy statement, and amendments thereto, and the definitive proxy statement in connection with CCCR's solicitation of proxies for its stockholders' meeting to be held to approve the transaction because the proxy statement will contain important information about the transaction and the parties to the transaction. The definitive proxy statement will be mailed to stockholders of CCCR as of a record date to be established for voting on the transaction. Stockholders will also be able to obtain copies of the proxy statement, without charge, once available, at the SEC's website at www.sec.gov or by directing a request to: 415-2351 Zhen Building, Yong An Street,Taishitun Town, Miyun District, Beijing Province People's Republic of China e-mail: 13584802352@139.com
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Commercial Credit, Inc. and its subsidiary companies, the business of Wheat Capital Group and the proposed transaction. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Mr. Long Yi, Chief Financial Officer and Director
China Commercial Credit, Inc.
Tel: +86 13584802352
Email: 13584802352@139.com
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