BEIJING, Feb. 5, 2015
/PRNewswire/ -- Vimicro International Corporation (NASDAQ:
VIMC) ("Vimicro" or the "Company"), a leading video surveillance
technology and solution provider in China, announced today that Alpha Spring
Limited (the "Investor"), a British Virgin Island company owned by
Zongyi Group ("Zongyi"), has entered into a stock purchase
agreement with Vimicro.
Pursuant to the stock purchase agreement entered into on
February 5, 2015, Zongyi agrees to
make a US$50 million investment in
Vimicro, with a purchase price of US$2.50 per ordinary share, the equivalent of
US$10.00 per ADS. Immediately after
the closing of the transaction, Zongyi will hold 20 million
ordinary shares of Vimicro, approximately 16.3% equity ownership of
the Company. The ordinary shares will be subject to a one-year
lock-up period. Upon closing and subject to the terms and
conditions of the stock purchase agreement, the Company will grant
customary registration rights to the Investor. The closing of the
investment is subject to customary closing conditions.
"We are very pleased to have secured US$50 million financing priced at significant
premium from a well-established local Chinese investment company,
which is a strong validation of Vimicro's leading positioning in
China's video surveillance
industry," commented Dr. John Deng,
Chairman & CEO of Vimicro. "Seeing the tremendous market
opportunity in the coming years, we believe sufficient capital will
enable our market expansion and corporate strategy execution. As
the only proven provider of SVAC technology and solutions in the
marketplace, Vimicro will continue to leverage its first-mover
advantages to capitalize on the trend of SVAC national standard
adoption by the government, to further establish itself as a
leading player in China's video
surveillance market, and to create long-term value for our
shareholders."
Mr. Shengda Zan, Chairman &
President of Zongyi Group, commented," We are quite delighted to be
able to obtain a meaningful ownership in Vimicro upon our due
diligence and channel checks, in which process we got to know the
management team at a personal level. Vimicro fits perfectly to our
investment strategy for its proprietary technology and
distinguished competency. We are mostly excited about Vimicro's
unique advantages in its addressable market, and confident of its
execution and performance for years to come."
About Vimicro International Corporation
Vimicro International Corporation (NASDAQ: VIMC) is a leading
video surveillance technology and solution provider that designs,
develops and markets a full range of video surveillance products
and solutions to governments, private enterprises, and consumers in
China. Vimicro co-developed SVAC
(Surveillance Video and Audio Coding), the national video
surveillance technological standard, which demonstrates its unique
strengths in proprietary multimedia IC technology, making it a
leader in China's fast-growing
security and surveillance market. Vimicro is headquartered in
Beijing, China and has
subsidiaries and offices throughout China and in Silicon Valley. Vimicro's ADSs
each represent four ordinary shares and are traded on the NASDAQ
Global Market exchange under the ticker symbol "VIMC."
About Zongyi Group
Headquartered in Shanghai,China, Zongyi Group is a conglomerate
engaging in investment, new energy, new materials and information
technology industries, with more than 30 subsidiaries and branches
in the world, including Jiangsu Zongyi Co., Ltd. (SH600770), a
Shanghai listed company with
market capitalization of approximately US$2.5 billion. Zongyi Group is also the major
shareholder of China Huishan Dairy Holdings Company Limited
(06863.HK), a Hong Kong listed
company, Yanghe Corporation (002304.SZ), Jinghuazhiyao Corporation
(002349.SZ), Zijin Insurance, Changan Insurance, and Bainianrenshou
Insurance. Zongyi Group is actively pursuing equity investment
opportunities in high technology corporations with its own
proprietary technology and distinguished competency.
Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the quotations from management in this announcement,
as well as Vimicro's expectations and forecasts, contain
forward-looking statements. Vimicro may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on forms 20-F and 6-K, etc., in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Vimicro's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the Company's ability to develop and sell
new mobile multimedia products; the expected growth of the mobile
multimedia market; the Company's ability to increase sales of
notebook camera multimedia processors; the Company's ability to
retain existing customers and acquire new customers and respond to
competitive market conditions; the Company's ability to respond in
a timely manner to the evolving multimedia market and changing
consumer preferences and industry standards and to stay abreast of
technological changes; the Company's ability to secure sufficient
foundry capacity in a timely manner; the company's ability to
effectively protect its intellectual property and the risk that it
may infringe on the intellectual property of others; and
cyclicality of the semiconductor industry. Further information
regarding these and other risks is included in Vimicro's annual
report on Form 20-F filed with the Securities and Exchange
Commission. Vimicro does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
All information provided in this press release is as of the date
hereof, and Vimicro undertakes no duty to update such information,
except as required under applicable law.
Contact:
Vimicro International Corporation
Investor Relations
Phone: +8610-5884-8898
E-mail: ir@vimicro.com
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SOURCE Vimicro International Corporation