Glory Star to Acquire YMT, a Leading Cross-border E-commerce Platform
BEIJING, April 27, 2021 /PRNewswire/ -- Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) ("Glory Star" or the "Company"), a leading digital media platform and content-driven e-commerce company in China, today announced that it has signed a non-binding letter of intent ("LOI") to acquire YMT Holding Limited ("YMT"), a leading integrated cross-border e-commerce platform in China. Pursuant to the LOI, Glory Star intends to issue restricted shares to acquire 100% YMT's equity where upon YMT will become a wholly owned subsidiary of Glory Star. The combined company will aim to become one of the leaders in a globalized, content-driven e-commerce industry, with an estimated user base of more than 300 million people.
Established in 2010 in China, YMT provides an independent cross-border e-commerce platform with over 100 million registered users in 88 countries and over 800 thousand online products available for sale daily. YMT has built its own international logistics service and created a global closed-loop e-commerce and logistics system. YMT has also established logistics centers in 13 metropolitan cities across the world, including New York, San Francisco, Los Angeles, London, Paris, Frankfurt, and Sydney. YMT has raised over US$100 million of capital from well-known institutions including Sina, SAIF Asia, Sailing Capital and China Merchants Capital. In 2020, YMT was named as one of the Hurun Global Unicorns.
Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, commented, "There is substantial synergy between Glory Star and YMT. Glory Star is strong in creating high-quality lifestyle content through its short video and interactive live-streaming platform. We can help YMT to efficiently acquire more high-quality customers and improve user stickiness. At the same time, YMT can provide CHEER e-Mall and other Glory Star subsidiaries with efficient global supply chain management and easy access to high-quality and globally-sourced consumer goods. Together, we can build an industry-leading platform integrating live streaming with e-commerce. We can develop more key opinion leaders (KOLs) and accelerate our e-commerce growth. The proposed transaction between Glory Star and YMT should bring greater value and returns to the shareholders of both parties."
Completion of the transaction is subject to, among other matters, the completion of due diligence, the negotiation of a definitive agreement providing for the transaction, and satisfaction of the conditions negotiated therein. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.
About Glory Star New Media Group Holdings Limited
Glory Star New Media Group Holdings Limited is a leading digital media platform and content-driven e-commerce company in China. Glory Star's ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching people's lives. The Company's large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking states include, but are not limited to, the Company's ability to develop its online retail and SaaS industry value chains, expand its business relationship with existing clients and continue its business growth trajectory. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the occurrence of any event, change or other circumstances that could give rise to the terms of the LOI not hereafter being reflected in a definitive agreement; the ability of the Company to meet NASDAQ listing standards following the transaction and in connection with the consummation thereof; the inability to complete the transactions contemplated by the LOI and any definitive agreement entered into by the parties due to the failure to obtain approval of the stockholders, if required, or other reasons; costs related to the proposed transaction; 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 pursue a growth strategy and manage growth profitability; and the possibility that the combined company may be adversely affected by other economic, business, and/or competitive factors. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
Glory Star New Media Group Holdings Limited
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SOURCE Glory Star New Media Group Holdings Limited