SHANGHAI, China, May 25, 2018 – Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”) today announced that on May 23, 2018, its board of directors declared a special one-time cash dividend of US$0.75 per ordinary share, or approximately US$14.97 per American depositary share (“ADS”), each of which represents twenty ordinary shares. The aggregate amount of the special cash dividend is approximately US$40 million based on 53,437,890 outstanding ordinary shares which is equal to approximately 2,671,895 ADSs.
Record holders of the Company’s ordinary shares at the close of business US Eastern Time on June 4, 2018 (the “Record Date”) will be entitled to receive the special cash dividend. The Company expects Citibank N.A., the depositary bank for Acorn’s ADS program, to distribute dividends to ADS holders as of the Record Date on or about June 22, 2018. Dividends to be paid to the Company’s ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.
Acorn has continued to focus on the company turnaround and executing its core strategy of profitably growing its legacy brands, such a Babaka, and its other existing business units, on one hand, and, at the same time, incubating new businesses, such as Acorn Fresh and Acorn Entertainment, on the other hand. It has continued to streamline the business by reducing overhead expenses as well as by selling non-core assets. It is focusing on deploying an “asset light” model for its China operations.
“Our shareholders have repeatedly pointed out the opportunity to unlock value on our balance sheet, create liquidity and return cash to shareholders. In response to this and following the recent sale of our wholly-owned Hong Kong subsidiary Bright Rainbow Investments Limited, and underlying non-core assets, in Q1 this year, our board has approved this return of capital to our shareholders,” said Mr. Jacob A. Fisch, CEO and President of Acorn. “Looking ahead, our capital management plan will focus on additional ways to create value for our shareholders while pursuing our core strategy of profitably growing our legacy brands and incubating new businesses.”
Acorn’s Executive Chairman, Mr. Robert W. Roche commented, “This special cash dividend demonstrates our commitment to maximizing shareholder value, and we believe it is an appropriate way to reward our shareholders for their support.”
As of March 31, 2018, the Company had US$18.7 million in cash and equivalents. In April 2018, the Company received approximately US$50 million in net proceeds from the sale of its wholly-owned Hong Kong subsidiary Bright Rainbow Investments Limited, which owns Shanghai HJX Digital Technology Co., Ltd, which owns the land use rights to a plot of land in the Qingpu district of Shanghai, along with the warehouse on that land plot.
About Acorn International, Inc.
Co-founded in 1998 by Executive Chairman Robert Roche, Acorn is a marketing and branding company in China with a proven track record of developing, promoting and selling a diverse portfolio of proprietary-branded products, as well as well-established and promising new products from third parties. Its business is currently comprised of two main divisions, its direct sales platforms and its distribution network. For more information visit www.acorninternationalgroup.com.
Safe Harbor Statement
This news release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipates,” “believes,” “estimates,” “expects,” “future,” “going forward,” “intends,” “outlook,” “plans,” “target,” “will,” “potential,” and similar statements. Such statements are based on management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
|Acorn International, Inc.||Compass Investor Relations|
|Ms. Margaret Zhao||Ms. Elaine Ketchmere, CFA|
|Phone: +86-21-5151888||Phone: +1-310-528-3031|
|Email: Zhaoxiaojie@chinadrtv.com||Email: Eketchmere@compass-ir.com|