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Oct12

Acorn International Enters into Definitive Merger Agreement for Going Private Transaction

Posted by Elaine in Press Release, Uncategorized

SHANGHAI, Oct. 12, 2020 — Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”), a leading marketing and branding company in China, today announced that it has entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with First Ostia Port Ltd., a Cayman Islands exempted company (the “Controlling Shareholder”) and its wholly owned subsidiary Second Actium Coin Ltd., a Cayman Islands exempted company (“Merger Sub”), pursuant to which, the Merger Sub will merge with and into the Company thereby becoming a wholly-owned subsidiary of the Controlling  Shareholder (the “Merger”).  The Company will be acquired in an all-cash transaction by the Controlling Shareholder.

Pursuant to the terms of the Merger Agreement, each ordinary share, par value $0.01 per share, of the Company (a “Share” or, collectively, the “Shares”), including Shares represented by American Depositary Shares, each representing twenty Shares (the “ADSs”), issued and outstanding immediately prior to the Effective Time, other than the Excluded Shares (as defined in the Merger Agreement) shall be cancelled in exchange for the right to receive $1.05 in cash per Share without interest (the “Per Share Merger Consideration”). As each ADS represents twenty Shares, each ADS issued and outstanding immediately prior to the Effective Time, other than ADSs representing Excluded Shares, shall represent the right to receive $21.00 in cash without interest (the “Per ADS Merger Consideration”) pursuant to the terms and conditions set forth in the Merger Agreement.

The Per Share Merger Consideration represents a premium of 44.1% over the Company’s closing price of US$14.57 per ADS as quoted on the New York Stock Exchange (“NYSE”) on August 17, 2020, the last trading day prior to the day when the Company received a non-binding “going private” proposal from the Controlling Shareholder. The Merger Consideration also represents an increase of approximately 38.0% over the US$15.22 per ADS offered by the Controlling Shareholder in its revised “going-private” proposal on August 18, 2020, and a premium of approximately 39.4% over the Company’s closing price of US$15.07 per ADS on October 9, 2020, the last trading day prior to issuance of this press release.

The Controlling Shareholder intends to fund a substantial portion of the consideration for the Merger in the form of debt funding from a third-party lender and has delivered to the Company duly executed copies of the Loan and Security Agreement.

The Board, acting upon the unanimous recommendation of a committee of independent directors established by the Board (the “Special Committee”), approved the Merger Agreement and the Merger. The Special Committee negotiated the terms of the Merger Agreement with the assistance of its independent financial and legal advisors.

The Merger, which is currently expected to close during the last quarter of 2020, is subject to customary closing conditions, including the approval of the Merger Agreement by a requisite Company vote of Shares representing at least two-thirds of the voting power of the Shares present and voting in person or by proxy at a meeting of the Company’s shareholders which will be convened to consider the approval of the Merger Agreement and the Merger. The Company will call a shareholders meeting for the purpose of voting on the adoption of the Merger Agreement and the transactions contemplated by the Merger Agreement as soon as practicable. If the Merger is completed, the Company will continue its operations as a privately held company and will be wholly owned by the Controlling Shareholder and, as a result of the Merger, the Company will no longer be listed on the NYSE.

Duff & Phelps, LLC  is serving as the financial advisor to the Special Committee. Hogan Lovells International LLP is serving as the U.S. legal counsel to the Special Committee.

Jean M. Roche & Associates is serving as the U.S. legal counsel to the Controlling Shareholder.

Additional Information about the Merger

The Company will furnish to the U.S. Securities and Exchange Commission (the “SEC”) a current report on Form 6-K regarding the Merger, which will include as an exhibit thereto the Merger Agreement. All parties desiring details regarding the Merger are urged to review these documents, which will be available at the SEC’s website (http://www.sec.gov).

In connection with the Merger, the Company will prepare and mail a proxy statement to its shareholders. In addition, certain participants in the Merger will prepare and mail to the Company’s shareholders a Schedule 13E-3 transaction statement that will include the proxy statement. These documents will be filed with or furnished to the SEC. INVESTORS AND SHAREHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE MERGER AND RELATED MATTERS. In addition to receiving the proxy statement and Schedule 13E-3 transaction statement by mail, shareholders also will be able to obtain these documents, as well as other filings containing information about the Company, the Merger and related matters, without charge, from the SEC’s website (http://www.sec.gov) or at the SEC’s public reference room at 100 F Street, NE, Room 1580, Washington, D.C. 20549.

The Company and certain of its directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be “participants” in the solicitation of proxies from our shareholders with respect to the Merger. Information regarding the persons who may be considered “participants” in the solicitation of proxies will be set forth in the proxy statement and Schedule 13E-3 transaction statement relating to the Merger when it is filed with the SEC. Additional information regarding the interests of such potential participants will be included in the proxy statement and Schedule 13E-3 transaction statement and the other relevant documents filed with the SEC when they become available.

This announcement is neither a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other filings that may be made with the SEC should the Merger proceed.

About Acorn International, Inc.

Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. 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,” “would,” “potential,” “proposal” and similar statements. Such statements are based on current expectations and current economic, 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 control, including whether certain conditions precedent to the Merger will be satisfied, which (if they are not) would mean the Merger may not close, and may cause actual results, performance, actions, 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.

Investor Contacts:

Acorn International, Inc.

              Compass Investor Relations

Mr. Jacob A. Fisch

              Ms. Elaine Ketchmere, CFA

Phone +86-21-5151-8888

              Phone: +1-310-528-3031

Email: ir@chinadrtv.com

              Email: Eketchmere@compass-ir.com

www.acorninternationalgroup.com

              www.compassinvestorrelations.com

Jul22

Acorn International Terminates Share Repurchase Plan

Posted by Elaine in Press Release, Uncategorized

Acorn International Terminates Share Repurchase Plan

SHANGHAI, July 22, 2020 — Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”), a leading marketing and branding company in China, today announced that it has terminated its previously authorized 10b5-1 share repurchase program due to questions and information Acorn has received suggesting that a new take private offer for the Company may be forthcoming soon.  Accordingly, the Company has determined, out of an abundance of caution, that it would be prudent to terminate the share repurchase program.

Acorn’s Board of Directors originally authorized the repurchase of up to US$2.5 million worth of its American depositary shares (“ADSs”) over a 12-month period. As of July 20, 2020, the Company had purchased approximately 10,000 ADSs at an average price of US$14.34 per ADS.

About Acorn International, Inc.

Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. For more information visit www.acorninternationalgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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, and include Acorn’s expectation that a revised take private offer for the Company may be forthcoming soon. Such statements are based on 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 Acorn’s control, including the extent and duration of the adverse impact of COVID-19, the availability of financing, and the performance of the capital markets in the U.S. and elsewhere, each of which may cause actual results, performance, actions, 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.

Investor Contacts:

 

Contact:

Compass Investor Relations
Ms. Elaine Ketchmere, CFA
Phone: +1-310-528-3031
Email: Eketchmere@compass-ir.com

May04

Acorn International Announces US$2.5 Million Share Repurchase Plan

Posted by Elaine in Press Release, Uncategorized

Acorn International Announces US$2.5 Million Share Repurchase Plan

SHANGHAI, May 4, 2020 — Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”), a leading marketing and branding company in China, today announced that the Company adopted a repurchase plan based upon a form approved by the Company’s Board of Directors in accordance with guidelines specified by Rule 10b5-1 under the Securities and Exchange Act of 1934, as amended, as well as Acorn’s insider trading policy. The Company may repurchase up to US$2.5million worth of its American depositary shares (“ADSs”) over the next 12 months under the repurchase plan.

The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and extent of any purchases will depend upon market conditions, the trading price of its ADSs and other factors, and are subject to the restrictions relating to volume, price and timing under applicable law. The Company’s Board of Directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. The Company plans to fund repurchases from its existing cash balance.

About Acorn International, Inc.

Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. For more information visit www.acorninternationalgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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 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 Acorn’s control, including the extent and duration of the adverse impact of COVID-19, which may cause actual results, performance, actions, 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.

Investor Contacts:

Contact:
Compass Investor Relations
Ms. Elaine Ketchmere, CFA 
Phone: +1-310-528-3031
Email: Eketchmere@compass-ir.com

May15

Acorn International Files 2017 Annual Report on Form 20-F

Posted by in Uncategorized · No Comments

SHANGHAI, May 15, 2018 — Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”) today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2017 with the Securities and Exchange Commission on May 15, 2018. The annual report can be accessed on the Company’s investor relations website at //www.acorninternationalgroup.com.

Acorn will provide a hard copy of its annual report for the fiscal year ended December 31, 2017, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to the Company’s IR representatives, or in writing to Acorn International, Inc., 19/F, 20th Building, No. 487 Tianlin Road, Shanghai, 200233, PRC.

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.

Contact:

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
www.chinadrtv.com www.compassinvestorrelations.com
Mar07

Acorn International Reports Financial Results for the Fourth Quarter and Full Year 2017

Posted by in Uncategorized · No Comments

Acorn International Reports Financial Results for the Fourth Quarter and Full Year 2017

SHANGHAI, March 7, 2018 — Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”), today announced its preliminary unaudited financial results for the fourth quarter and year ended December 31, 2017.  The Company is completing its final audited financial statements which will be filed with its Annual Report on Form 20-F.

In 2017, Acorn experienced a moderate year-over-year decline in revenues as the Company continued to streamline its business operations. In August 2017, the Company announced the partial divestiture of its HJX electronic learning products business, which reduced revenues but allowed the Company to lower operating expenses, increase margins and focus on expanding its already profitable businesses and brands.

Acorn placed a strong emphasis on the e-commerce channel in 2017 with positive results, primarily due to growing momentum in sales of its proprietary Babaka posture correction products throughout the year, despite some choppiness at the end of the year.  This drove an improvement in gross margin to 62.1%, as compared to 51.2% in 2016.  Total operating expenses decreased 2.9% in 2017 compared with 2016 despite a $6.0 million gain on the sale of non-core real estate assets in 2016 which offset operating expenses in the year ago period.  Operating loss improved to $7.3 million compared to an operating loss of $9.3 million in 2016.

During 2017, the Company received dividends from and recorded gains from the sale of shares of Yimeng Software Technology Co., Ltd. (“Yimeng”), a publicly traded company in China and recorded other income of approximately $12.2 million. The Company recorded a net profit of $4.9 million and closed the year with a cash position of $21.1 million.

Acorn anticipates further liquidation of non-core assets, including a potential sale or other liquidity generating transaction involving non-core real property in Shanghai, which has a carrying value of approximately $16.5 million. The Company may also sell additional shares of Yimeng from time to time or sell out its position in Yimeng based on market factors and its other investment and capital requirements.

In 2018 and beyond, Acorn will continue to emphasize the e-commerce channel and plans to introduce new products and product line extensions, as well as incubate new businesses within the Group. The Company continually evaluates new business opportunities and is also exploring several other new areas of potential growth.

Preliminary Financial Results for the Fourth Quarter of 2017:

Total net revenues were $5.6 million in the fourth quarter of 2017, down 8.5% from $6.1 million in the fourth quarter of 2016. The decrease in sales was primarily due to the partial exit from the HJX electronic learning device business, partially offset by an increase in e-commerce sales of posture correction and other products.

Cost of sales in the fourth quarter of 2017 was $2.1 million, down 29.8% from $3.0 million in the fourth quarter of 2016.

Gross profit in the fourth quarter of 2017 was $3.5 million, up 11.8% from $3.1 million in the fourth quarter of 2016, despite the lower total net revenues for the period. Gross margin was 62.5% in the fourth quarter of 2017, up from 51.1% in the fourth quarter of 2016. The increase in gross margin was due to a larger proportion of higher margin e-commerce sales and products in the product mix.

Total operating expenses in the fourth quarter of 2017 were $5.4 million, down 49.1% from $10.7 million in the fourth quarter of 2016. The decrease was attributable to lower selling and marketing expenses associated with the exit from the HJX business as well as a reduction in general and administrative expenses due to lower labor expenses and stock based compensation.

Loss from operations was $2.0 million in the fourth quarter of 2017, as compared to loss from operations of $7.6 million in the fourth quarter of 2016.

Other income was $0.1 million in the fourth quarter of 2017, as compared to other expense of $0.4 million in the fourth quarter of 2016.

The Company recorded an income tax benefit of $1.8 million in the fourth quarter of 2017, as compared to income tax benefit of $0.2 million in the fourth quarter of 2016.

Net income was $23,071 in the fourth quarter of 2017, as compared to net loss of $7.9 million in the fourth quarter of 2016.

As of December 31, 2017, Acorn’s cash and cash equivalents, with restricted cash, totaled $21.1 million, as compared to $25.6 million as of December 31, 2016.

As of December 31, 2017, the Company had repurchased 1,162 ADSs at an average price $16.84 per ADS under its share repurchase program, which was approved by the Board of Directors on December 8, 2017.

Preliminary Full Year 2017 Financial Results

Total net revenues were $22.3 million in 2017, down 9.1% from $24.5 million in 2016. The decrease in revenues was largely attributable to the partial exit from the HJX electronic learning device business announced in the third quarter of 2017.

Cost of sales in 2017 was $8.4 million, down 29.5% from $12.0 million in 2016.

Gross profit in 2017 was $13.9 million, up 10.3% from $12.6 million in 2016. Gross margin was 62.1% in 2017, up from 51.2% in 2016. The increase in gross profit was largely attributable to a larger proportion of higher margin e-commerce sales and products in the product mix.

Total operating expenses in 2017 were $21.2 million, down slightly from operating expenses of $21.8 million in 2016.  Operating expenses for 2016 were reduced by the impact of a $6.0 million gain from the sale of non-core real estate assets, which partially offset operating expense for the period. There was no such gain in 2017.

Loss from operations was $7.3 million in 2017, as compared to a loss from operations of $9.3 million in 2016. The loss from operations for 2016 benefited from the $6.0 million gain from the sale of real estate assets.

Share-based compensation was $25,000 in 2017, as compared to $658,000 in 2016.

Other income was $12.2 million in 2017, primarily due to dividends and gains from sales of Yimeng shares. This compares to other income of $18.1 million in 2016, which was also primarily attributable to gains from sales of Yimeng shares.

Net income was $4.9 million in 2017 as compared to net income of $3.4 million in 2016.

Conference Call

The Company will host a conference call at 8:30 a.m. ET (5:30 a.m. PT), March 7, 2018, to discuss financial results. Dial-in details for the earnings conference call are as follows:

US/Canada: +1-877‑856‑1969
International: +1-719‑457‑2647

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode 5585857 to join the call. A replay will be available approximately two hours following the conclusion of the conference call through March 14, 2018, and can be accessed by dialing (888) 203-1112, or (719) 457-0820, passcode 5585857. An archived audio file of the call will be available on the Company’s website //www.acorninternationalgroup.com/home/news-and-events/webcasts-and-presentations/.

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 nationwide distribution network. For more information visit www.acorninternationalgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press 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,” “strives,” “expects,” “future,” “going forward,” “intends,” “outlook,” “plans,” “target,” “will,” and similar statements and include statements with respect to the Company’s ability to increase revenue, maintain margins, manage expenses and generate additional cash flow; the Company’s ability to grow sales of its proprietary-branded products as well as third-party products and brands through e-commerce, its other direct sales platforms as well as its distribution network; and the Company’s ability to sell its non-core assets as planned. The Company’s efforts to implement its proposed business plans, reduction of operating expenses or sale of any assets may not succeed as anticipated or at all.  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 these preliminary financial results and 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.

Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: the Company’s ability to successfully improve or introduce new products and services, including to offset declines in sales of existing products and services; the Company’s ability to stay abreast of consumer market trends and maintain the Company’s reputation and consumer confidence; the Company’s ability to execute and maintain a successful market strategy; potential unauthorized use of the Company’s intellectual property; potential disruption of the Company’s manufacturing processes; increasing competition in China’s consumer market; the Company’s U.S. tax status as a passive foreign investment company; and general economic and business conditions in China. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2016 annual report on Form 20-F filed with SEC on May 15, 2017. For a discussion of other important factors that could adversely affect the Company’s business, financial condition, results of operations and prospects, see “Risk Factors” beginning on page 9 of the Company’s Form 20-F for the fiscal year ended December 31, 2016. The Company’s actual results of operations for the fourth quarter of 2017 are not necessarily indicative of its operating results for any future periods. Any projections in this release are based on limited information currently available to the Company, which is subject to change. Although such projections and the factors influencing them will likely change, the Company will not necessarily update the information. Such information speaks only as of the date of this release.

Statement Regarding Unaudited Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

Acorn International, Inc.
Unaudited Consolidated Statement of Operations
(In US Dollars)
Three months ended December 31, Year ended December 31,
2016 2017 2016 2017
Net revenues 6,071,764 5,553,123 24,527,876 22,295,628
Cost of revenues (2,968,832) (2,083,090) (11,972,293) (8,444,650)
Gross profit 3,102,932 3,470,033 12,555,583 13,850,978
Operating (expenses) income
Advertising expenses – – (23,701) –
Other selling and marketing expenses (4,103,127) (2,901,314) (12,970,090) (11,446,425)
G&A expenses (6,896,845) (3,041,833) (16,437,112) (11,212,542)
Other operating income, net 346,595 521,066 7,607,334 1,473,055
Total operating (expenses) income (10,653,377) (5,422,081) (21,823,569) (21,185,912)
Loss from operations (7,550,445) (1,952,048) (9,267,986) (7,334,934)
Other income (expenses) (412,454) 137,928 18,137,553 12,170,452
Income (loss) before income taxes and
equity in losses of affiliates
(7,962,899) (1,814,120) 8,869,567 4,835,518
Income tax – current 616,163 1,836,003 (4,169,360) 61,718
Income tax – deferred (423,423) – (423,423) –
Income (loss) from continuing operations (7,770,159) 21,883 4,276,784 4,897,236
Equity in losses of affiliates (150,000) – (868,121) –
Net income (loss) (7,920,159) 21,883 3,408,663 4,897,236
Net income attributable to noncontrolling
interests
5,129 1,188 29,707 4,457
Net income (loss) attributable to Acorn
International, Inc.
(7,915,030) 23,071 3,438,370 4,901,693

 

Acorn International, Inc.
Consolidated Balance Sheet 
(in US dollars)
2016/12/31 2017/12/31
 (unaudited)
Cash and cash equivalents 25,505,731 21,017,803
Restricted cash 72,077 78,051
Accounts receivable, net 1,271,209 1,395,810
Inventory 3,977,336 1,345,353
Prepaid advertising expenses 10,689 –
Other prepaid expenses and current assets, net 2,667,930 3,913,442
Current portion of convertible loan – 3,587,204
Deferred tax assets, net 588,493 624,771
Current assets 34,093,465 31,962,434
Prepaid land use right 6,578,765 6,818,040
Property and equipment, net 13,885,079 13,765,948
Acquired intangible assets, net 575,273 353,691
Available-for-sale securities 74,666,865 50,881,233
Convertible loan 3,218,665 –
Loan to related party – 3,628,415
Other long-term assets 301,752 181,843
Total assets 133,319,864 107,591,604
Accounts payable 2,614,118 2,100,933
Accrued expenses and other current liabilities 9,132,166 7,978,839
Income taxes payable 3,665,757 313,435
Deferred revenue 380,526 512,009
Current liabilities 15,792,567 10,905,216
Deferred tax liability 18,017,610 12,090,614
Total liabilities 33,810,177 22,995,830
Ordinary shares 918,185 918,844
Additional paid-in capital 161,938,330 161,962,670
Statutory reserve 8,351,153 8,350,141
Retained earnings (131,262,029) (126,359,324)
Beginning balance (123,287,249) (126,382,395)
Net income attributable to Acorn (7,915,030) 23,071
Appropriation of statutory reserve fund (59,750) –
Accumulated other comprehensive income 80,865,261 65,703,299
Treasury stock, at cost (21,640,346) (26,335,296)
Total Acorn International, Inc. shareholders’ equity 99,170,554 84,240,334
Noncontrolling interests 339,133 355,440
Total equity 99,509,687 84,595,774
Total liabilities and equity 133,319,864 107,591,604

 

 

Contact:
Acorn International, Inc. Compass Investor Relations
Ms. Margaret Zhao Ms. Elaine Ketchmere, CFA
Phone +86-21-5151-2677 Phone: +1-310-528-3031
Email: zhaoxiaojie@chinadrtv.com Email: Eketchmere@compass-ir.com
www.chinadrtv.com www.compassinvestorrelations.com

 

Mar06

Acorn International to Report Results for the Fourth Quarter and Full Year 2017

Posted by in Uncategorized · No Comments

SHANGHAI, China, March 6, 2018 – Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”) today announced that the Company will release financial results for the fourth quarter and full year 2017 before the market opens on Wednesday, March 7, 2018.  The Company will hold a conference call to discuss the financial results for investors at 8:30 AM ET on that same day.

Jacob A. Fisch, CEO and President of Acorn, will lead the call.  Following the presentation, there will be a brief question and answer segment for investors and analysts.

Dial-in details for the earnings conference call are as follows:

US/Canada:                        +1-877 856 1969

International:                   +1-719 457 2647

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode 5585857 to join the call. A replay will be available approximately two hours following the conclusion of the conference call through March 14, 2018 and can be accessed by dialing (888) 203-1112, or (719) 457-0820, passcode 5585857.  An archived audio file of the call will be available on the Company’s website //www.acorninternationalgroup.com/home/news-and-events/webcasts-and-presentations/.

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,” 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.

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.

Contact:
Acorn International, Inc. Compass Investor Relations
Ms. Margaret Zhao Ms. Elaine Ketchmere, CFA
Phone: +86-21-5151-2677 Phone: +1-310-528-3031
Email: zhaoxiaojie@chinadrtv.com   Email: Eketchmere@compass-ir.com
www.chinadrtv.com www.compassinvestorrelations.com
Dec15

Acorn International Reports Financial Results for the Third Quarter of 2017 and Announces $2.0 Million Share Buyback Plan

Posted by in Uncategorized · No Comments

SHANGHAI, Dec. 15, 2017 — Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”), today announced its unaudited financial results for the third quarter ended September 30, 2017.

In the third quarter of 2017, Acorn experienced a moderate year-over-year decline in revenues following the partial divestiture of its HJX electronic learning products business announced in August 2017. The exit from the HJX business drove increases in gross profit and reductions in operating expenses and more importantly, allowed the Company to focus on expanding its already profitable businesses and brands.

As a result, Acorn saw strong growth from the e-commerce channel, primarily from sales of its proprietary Babaka posture correction products, and an increase in gross margin to 69.3% from 54.5% in the year-ago period due to a larger proportion of higher margin e-commerce sales in the product mix. Total operating expenses decreased 11.4% year-over-year and operating loss improved to $0.8 million compared to a loss of $1.5 million.

During the quarter, the Company received dividends from Yimeng Software Technology Co., Ltd. (“Yimeng”), a publicly traded company in China and recorded other income of approximately $2.7 million. The Company recorded a net profit of $2.3 million and closed the quarter with a cash position of $25.1 million.

Acorn anticipates further liquidation of non-core assets, including a potential sale or other liquidity generating transaction involving non-core property in Shanghai, which has a carrying value of approximately $13.2 million. The Company may also sell additional shares of Yimeng from time to time based on market factors and its other investment and capital requirements.

For the fourth quarter of 2017, Acorn has experienced some pressure on revenue and profits. Acorn’s participation in Alibaba’s Singles Day event was not as productive as planned and Acorn’s e-commerce business is facing additional headwinds that are continuing to play out through the month of December.

In 2018 and beyond, Acorn will continue to emphasize the e-commerce channel and plans to introduce new products and product line extensions. The Company will seek to increase revenues and improve profitability by focusing on its own proprietary brands.  Simultaneously, the Company continually evaluates new business opportunities and is also exploring several other new areas of potential growth.

Financial Results for the Third Quarter of 2017:

Total net revenues were $6.1 million in the third quarter of 2017, down 19.5% from $7.5 million in the third quarter of 2016. The decrease in sales was primarily due to the partial exit from the HJX electronic learning device business, partially offset by an increase in e-commerce sales of posture correction and other products.

Cost of sales in the third quarter of 2017 was $1.9 million, down 45.7% from $3.4 million in the third quarter of 2016.

Gross profit in the third quarter of 2017 was $4.2 million, up slightly from $4.1 million in the third quarter of 2016, despite the lower total net revenues for the period. Gross margin was 69.3% in the third quarter of 2017, up from 54.5% in the third quarter of 2016. The increase in gross margin was due to a larger proportion of higher margin e-commerce sales in the product mix.

Total operating expenses in the third quarter of 2017 were $5.0 million, down 11.4% from $5.6 million in the third quarter of 2016. The decrease was attributable to lower selling and marketing expenses associated with the exit from the HJX business as well as lower general and administrative expenses.

Loss from operations was $0.8 million in the third quarter of 2017, as compared to loss from operations of $1.5 million in the third quarter of 2016.

Other income was $2.8 million in the third quarter of 2017, primarily attributable to dividends from Yimeng shares.  Other income was $0.5 million in the third quarter of 2016.

Net income was $2.3 million in the third quarter of 2017, as compared to net loss of $1.8 million in the third quarter of 2016.

As of September 30, 2017, Acorn’s cash and cash equivalents, with restricted cash, totaled $25.1 million, as compared to $25.6 million as of December 31, 2016.

Nine Months 2017 Financial Results

Total net revenues were $16.7 million in the first nine months of 2017, down 9.5% from $18.5 million in the same period in 2016. The decrease in revenues was largely attributable to the partial exit from the HJX electronic learning device business announced in the third quarter of 2017.

Cost of sales in the first nine months of 2017 was $6.4 million, down 29.3% from $9.0 million in the same period in 2016.

Gross profit in the first nine months of 2017 was $10.4 million, up 9.8% from $9.4 million in the same period in 2016. Gross margin was 62.0% in the first nine months of 2017, up from 51.2% in the same period of 2016. The increase in gross profit was largely attributable to the change in product mix to favor higher margin proprietary products.

Total operating expenses in the first nine months of 2017 were $15.8 million, an increase of $4.6 million from operating expenses of $11.2 million in the same period in 2016.  Operating expenses for the first nine months of 2016 were reduced by the impact of a $6.0 million gain from the sale of non-core real estate assets, which partially offset operating expense for the period. There was no such gain in the first nine months of 2017.

Loss from operations was $5.4 million in the first nine months of 2017, as compared to a loss from operations of $1.7 million in the same period in 2016. The loss from operations for the first nine months of 2016 benefited from the $6.0 million gain from the sale of real estate assets.

Share-based compensation was $25,000 in the first nine months of 2017, as compared to $488,076 in the same period in 2016.

Other income was $12.0 million in the first nine months of 2017, primarily due to dividends and gains from sales of Yimeng shares.  This compares to other income of $18.6 million in the first nine months of 2016, which was also primarily attributable to gains from sales of Yimeng shares.

Net income was $4.9 million in the first nine months of 2017 as compared to net income of $11.4 million in the first nine months of 2016.

Share Buyback Plan

On December 8, 2017, Acorn’s board of directors approved a new share buyback plan of the Company’s ADSs for a period of one year, replacing the terms of the plan approved in February 2017. Under the new buyback plan, Acorn is authorized to repurchase up to $2.0 million of its ADSs within a one-year period from December 7, 2017 to December 7, 2018. The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and extent of any purchases will depend upon market conditions, the trading price of its ADSs and other factors, and are subject to the restrictions relating to volume, price and timing under applicable law. The Company’s Board of Directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company plans to fund any repurchases from its existing cash balance.

Conference Call

The Company will host a conference call at 8:30 a.m. ET (5:30 a.m. PT), December 15, 2017, to discuss financial results. Dial-in details for the earnings conference call are as follows:

US/Canada: +1-888‑359‑3624
International: +1-719‑457‑2604

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode 8440907 to join the call. A replay will be available approximately two hours following the conclusion of the conference call through December 22, 2017, and can be accessed by dialing (866) 375-1919, or (719) 457-0820, passcode 8440907. An archived audio file of the call will be available on the Company’s website //www.acorninternationalgroup.com/home/news-and-events/webcasts-and-presentations/.

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 nationwide distribution network. For more information visit www.acorninternationalgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press 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,” “strives,” “expects,” “future,” “going forward,” “intends,” “outlook,” “plans,” “target,” “will,” and similar statements and include statements with respect to the Company’s ability to increase revenue, maintain margins, manage expenses and generate additional cash flow; the Company’s ability to grow sales of its proprietary-branded products as well as third-party products and brands through e-commerce, its other direct sales platforms as well as its distribution network; and the Company’s ability to sell its non-core assets as planned. The Company’s efforts to implement its proposed business plans, reduction of operating expenses or sale of any assets may not succeed as anticipated or at all.  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 these preliminary financial results and 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.

Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: the Company’s ability to successfully improve or introduce new products and services, including to offset declines in sales of existing products and services; the Company’s ability to stay abreast of consumer market trends and maintain the Company’s reputation and consumer confidence; the Company’s ability to execute and maintain a successful market strategy; potential unauthorized use of the Company’s intellectual property; potential disruption of the Company’s manufacturing processes; increasing competition in China’s consumer market; the Company’s U.S. tax status as a passive foreign investment company; and general economic and business conditions in China. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2016 annual report on Form 20-F filed with SEC on May 15, 2017. For a discussion of other important factors that could adversely affect the Company’s business, financial condition, results of operations and prospects, see “Risk Factors” beginning on page 9 of the Company’s Form 20-F for the fiscal year ended December 31, 2016. The Company’s actual results of operations for the third quarter of 2017 are not necessarily indicative of its operating results for any future periods. Any projections in this release are based on limited information currently available to the Company, which is subject to change. Although such projections and the factors influencing them will likely change, the Company will not necessarily update the information. Such information speaks only as of the date of this release.

Statement Regarding Unaudited Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

Contact:

Acorn International, Inc. Compass Investor Relations
Ms. Naomi Deng Ms. Elaine Ketchmere, CFA
Phone +86-21-5151-2944 Phone: +1-310-528-3031
Email: dengqi@chinadrtv.com Email: Eketchmere@compass-ir.com
www.chinadrtv.com www.compassinvestorrelations.com

 

ACORN INTERNATIONAL, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In US dollars)
3 Months Ended September 30 9 Months Ended September 30
2016 2017 2016 2017
(unaudited) (unaudited) (unaudited) (unaudited)
 Net revenues  7,540,146 6,066,861 18,456,112 16,742,505
 Cost of revenues  (3,428,467) (1,862,527) (9,003,461) (6,361,560)
 Gross profit  4,111,679 4,204,334 9,452,651 10,380,945
 Operating (expenses) income 
   Advertising expenses – – (23,701) –
   Other selling and marketing
expenses
(3,285,211) (2,809,493) (8,866,963) (8,545,111)
  General and administrative
expenses
(2,783,853) (2,581,581) (9,540,267) (8,170,709)
  Other operating income, net 468,099 429,747 7,260,739 951,989
  Total operating (expenses) income (5,600,965) (4,961,327) (11,170,192) (15,763,831)
Income (Loss) from operations  (1,489,286) (756,993) (1,717,541) (5,382,886)
  Other income 459,428 2,845,268 18,550,007 12,032,524
Income before income taxes and
equity in losses of affiliates 
(1,029,858) 2,088,275 16,832,466 6,649,638
  Income tax benefit (expenses) (26,232) 175,609 (4,785,523) (1,774,285)
  Equity in losses of affiliates 718,121 – 718,121 –
 Net income (loss) (1,774,211) 2,263,884 11,328,822 4,875,353
 Net (loss) attributable to
noncontrolling interests 
(1,740) (1,013) (24,578) (3,269)
Net income (loss) attributable to
Acorn International, Inc.
(1,772,471) 2,264,897 11,353,400 4,878,622

 

 

ACORN INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(In US dollars)
31-Dec-16 30-Sep-17
(Unaudited)
Assets
 Cash and cash equivalents 25,505,731 25,064,156
 Restricted cash 72,077 75,336
 Accounts receivable, net 1,271,209 1,218,324
 Inventory 3,977,336 1,733,328
 Prepaid advertising expenses 10,689 –
 Other prepaid expenses and current assets, net 2,667,930 3,770,500
 Deferred tax assets, net 588,493 615,103
 Current assets 34,093,465 32,476,747
Prepaid land use rights 6,578,765 6,753,462
Property and equipment, net 13,885,079 13,719,861
Acquired intangible assets, net 575,273 389,058
Available-for-sale securities 74,666,865 56,799,652
Convertible loan 3,218,665 3,491,201
Other long-term assets 301,752 188,027
Total assets 133,319,864 113,818,008
Liabilities and equity
 Accounts payable 2,614,118 1,988,666
 Accrued expenses and other current liabilities 9,132,166 6,854,246
 Income taxes payable 3,665,757 2,555,333
 Deferred revenue 380,526 531,204
 Current liabilities 15,792,567 11,929,449
Deferred tax liability 18,017,610 13,579,963
Total liabilities 33,810,177 25,509,412
Equity
 Ordinary shares 918,185 918,844
 Additional paid-in capital 161,938,330 161,962,670
 Accumulated deficits (122,910,876) (118,032,254)
 Accumulated other comprehensive income 80,865,261 69,423,876
 Treasury stock, at cost (21,640,346) (26,315,660)
 Total Acorn International, Inc. shareholders’ equity 99,170,554 87,957,476
Noncontrolling interests 339,133 351,120
Total equity 99,509,687 88,308,596
Total liabilities and equity 133,319,864 113,818,008

 

Dec14

Acorn International to Report Results for the Third Quarter of 2017

Posted by in Uncategorized · No Comments

SHANGHAI, China, December 14, 2017 – Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”) today announced that the Company will release financial results for the third quarter before the market opens on Friday, December 15, 2017.  The Company will hold a conference call to discuss the financial results for investors at 8:30 AM ET on that same day.

Jacob A. Fisch, CEO and President of Acorn, will lead the call.  Following the presentation, there will be a brief question and answer segment for investors and analysts.

Dial-in details for the earnings conference call are as follows:

US/Canada:                        +1-888 359 3624

International:                    +1-719 457 2604

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode 8440907 to join the call. A replay will be available approximately two hours following the conclusion of the conference call through December 22, 2017, and can be accessed by dialing (866) 375-1919, or (719) 457-0820, passcode 8440907.  An archived audio file of the call will be available on the Company’s website //www.acorninternationalgroup.com/home/news-and-events/webcasts-and-presentations/.

 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,” 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.

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.

Contact:
Acorn International, Inc. Compass Investor Relations
Ms. Naomi Deng Ms. Elaine Ketchmere, CFA
Phone: +86-21-5151-2944 Phone: +1-310-528-3031
Email: denqi@chinadrtv.com   Email: Eketchmere@compass-ir.com
www.chinadrtv.com www.compassinvestorrelations.com
Nov22

Acorn International Enters Strategic Cooperation Framework Agreement with Cachet Hotel Group

Posted by in Uncategorized · No Comments

SHANGHAI, China, November 22, 2017 – Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”) today announced that it has entered into a Strategic Cooperation Framework Agreement with Cachet Hotel Group Limited Cayman L.P. (“Cachet”), an international hospitality branding and management company. It is also part of the Roche Enterprises Limited group of companies. Roche Enterprises Limited is owned by Acorn’s Executive Chairman, Mr. Robert Roche and Mr. Roche is the Executive Chairman and the majority shareholder of Cachet. In addition, Mr. Jacob A. Fisch, Acorn’s Chief Executive Officer is a shareholder and member of the Board of Directors of Cachet. This Strategic Cooperation Framework Agreement is part of Acorn’s growth strategy to leverage its affiliate connections and, to the extent possible, build a stronger relationship with its fellow Roche Enterprises Limited portfolio companies.

Under the Strategic Cooperation Framework Agreement, Acorn will become Cachet’s preferred supplier for sourcing of all amenities, textiles, other hotel goods as well as various furniture, fixtures and equipment for the hotels, restaurants, clubs and other types of properties managed by Cachet, subject to Acorn’s ability to procure the products satisfying Cachet’s requirements on commercially reasonable terms. Best efforts will be used to ensure that the owners of these properties purchase their products from Acorn.

“Acorn’s relationship with Roche Enterprises Ltd. is a great asset for the firm, providing opportunities to leverage our existing procurement capabilities and expand into new markets such as the hospitality industry through Cachet Hotel Group,” said Mr. Jacob A. Fisch, CEO and President of Acorn. “This agreement solidifies our relationship and opens the door for us to expand into several other areas and take advantage of increasing opportunities within the Roche Enterprises Limited network of companies.

The Strategic Cooperation Framework Agreement also provides a credit facility for Acorn to loan to Cachet up to $10.0 million at an interest rate of 8% per annum for amounts borrowed in USD and 10% for amounts borrowed in RMB, with each drawdown subject to Acorn’s consent in its sole and absolute discretion. The facility has a three-year term with two one-year renewal options. Cachet’s repayment of all loans under the credit facility are personally guaranteed by Mr. Roche. As of September 30, 2017, Acorn had approximately $23.0 million in cash and equivalents earning standard bank interest rates. The credit facility affords Acorn the opportunity to invest its cash reserves at above market rates and on preferential terms while also allowing it to use such support to strengthen its strategic relationship with Cachet.

In accordance with the company’s corporate governance guidelines and its audit committee charter, Acorn’s entry into the strategic cooperation agreement, including the transactions with an entity affiliated with Mr. Robert Roche and Mr. Jacob Fisch, was reviewed and approved by Acorn’s audit committee as well as the full board of directors.

About Cachet Hotel Group

Cachet Hospitality Group is a global hospitality branding, design and management company with an expanding portfolio of premier hotel, food, beverage and nightlife brands in the Americas, Greater China and South-East Asia. Its newest property, Cachet Boutique NYC, marks Cachet’s exciting entry into the US market in 2017, with established properties operating in Shanghai, Kunming, Phuket, Cabo San Lucas. CHG has a confirmed pipeline in Utah, Shaoxing, Baoji, Wuhan, Chengdu and Bangkok and additional development in Cabo San Lucas. CHG has offices in Shanghai, Bangkok and Los Angeles. For more information visit https://www.cachethotelgroup.com/.

About Roche Enterprises, Ltd.

Roche Enterprises invests in a broad range of industry sectors, including consumer (products, media, and branding), hospitality, real estate, financial, energy, and logistics. Specializing in the U.S., Japan and China markets spanning the Asia-Pacific region, it was founded by Robert W. Roche, its Chairman. Through Roche Enterprises and his other companies, Roche has helped create, fund or manage more than 40 companies that have generated more than $1 billion in enterprise value. For more information visit www.rocheenterprises.com.

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 nationwide 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,” 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.

Contact:

Acorn International, Inc.                                                                                Compass Investor Relations

Ms. Naomi Deng                                                                                             Ms. Elaine Ketchmere, CFA

Phone +86-21-5151-2944                                                                              Phone: +1-310-528-3031

Email: dengqi@chinadrtv.com                                                                      Email: Eketchmere@compass-ir.com

www.chinadrtv.com                                                                                        www.compassinvestorrelations.com

Nov20

Acorn International Announces Shareholder Resolutions Adopted at 2017 Annual General Meeting

Posted by in Uncategorized · No Comments

SHANGHAI, China, November 20, 2017 – Acorn International, Inc. (NYSE: ATV) (“Acorn” or the “Company”) today announced the resolutions that were adopted at its annual general meeting of shareholders held in Shanghai on November 15, 2017.

At the meeting, Acorn’s shareholders approved the re-election of Mr. Robert W. Roche, Mr. David Leung, Mr. Pierre E. Cohade, Ms. Jenny Hseau-Jean Wang and Mr. Haibing Wu to serve on the board of directors of the Company. Acorn’s shareholders also ratified the appointment of Grant Thornton CPA LLP as independent auditor of the Company for fiscal year 2017.

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 nationwide distribution network. For more information visit www.acorninternationalgroup.com.

 

Contact:    
Acorn International, Inc.   Compass Investor Relations
Ms. Naomi Deng   Ms. Elaine Ketchmere, CFA
Phone: +86-21-5151-2944   Phone: +1-310-528-3031
Email: dengqi@chinadrtv.com   Email: Eketchmere@compass-ir.com
www.acorninternationalir.com   www.compassinvestorrelations.com
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  • Acorn International Announces US$2.5 Million Share Repurchase Plan
Acorn International, Inc.

Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. Previously the leading TV infomercial company in China, Acorn today has three divisions support its growth: 1) Products Division, 2) Digital Services Division, 3) Sourcing Division.

In the Products Division, Acorn sells products primarily through e-commerce channels in China, as well as through offline distribution and outbound marketing.
In the Digital Services Division, Acorn brings the best Western celebrity/ influencers and brands to China, representing their in-country digital presence and e-commerce.
In the Sourcing Division, Acorn has a track record of managing hundreds of factories and supply chains, selecting and developing products and building brands into top sellers and household names.

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