BEIJING, June 4, 2015 /PRNewswire/ -- VisionChina Media
Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN),
China's largest out-of-home
digital television advertising network on mass transportation
systems and the leading provider of urban mass transit Wi-Fi, today
announced the signing of a definitive Equity Subscription Agreement
(the "Agreement") for approximately US$11.5
million of Series A equity for Shenzhen Qianhai VisionChina
Mobile Interactive Co., Ltd. ("Qianhai Mobile"). Qianhai Mobile is
a consolidated affiliate[1] of the Company engaged in the research,
development and operation of mass transit Wi-Fi networks and the
provision of mobile Internet value-added services in the PRC. The
transaction was led by Beijing Baidu Netcom Science Technology Co.,
Ltd., a consolidated affiliate of Baidu Inc. (Nasdaq: BIDU) and
also included Guangdong Zhongke Baiyun New Industry Venture
Investment Co., Ltd. and Dongguan Zhongke Zhongguang Venture
Investment Co., Ltd., both of which are reputable national private
equity investors in the PRC. The transaction is subject to
customary closing conditions.
[1] Qianhai Mobile is
a subsidiary of VisionChina Media Group Co., Ltd, the Company's
consolidated variable interest entity.
|
As part of the transaction, Qianhai Mobile and Baidu have
entered into a Business Cooperation Agreement to jointly develop
and monetize mobile app distribution and other mobile passenger
services powered by Baidu Map.
Mr. Limin Li, VisionChina Media's
Chairman and Chief Executive Officer commented, "This transaction
represents another important milestone for our Company, and a
significant step in our strategy to develop the largest
transit-based Wi-Fi network in China. We are proud to have Baidu and other
investors demonstrating confidence in our vision, business model
and execution capabilities. We believe that our collaboration with
Baidu will yield meaningful technology synergies and future
monetization opportunities."
Mr. Peter Fang, Senior Director
of Baidu Corporate Development commented, "We are very impressed
with VisionChina Media's many years of experience operating the
leading public transit-based media platform in China, and the Company's ongoing transition to
an Internet-focused business. We are excited about the opportunity
to work with VisionChina Media to truly address the needs of urban
commuters and realize the significant long-term value of the
Company's public transit Wi-Fi network."
As of date of this press release, VisionChina Media, through its
Qianhai Mobile affiliate, has secured exclusive concession rights
for bus Wi-Fi services in 18 cities across China, including Shanghai, Shenzhen, Guangzhou and Tianjin, covering approximately 35,000 buses.
Currently, Qianhai Mobile provides free Wi-Fi Internet services on
approximately 15,000 buses under the brand name "VIFI," spanning
over 7.5 million commuters and providing over 3 million Wi-Fi
service sessions per day. The Company will use the proceeds from
this transaction to pursue additional concession rights and further
expand its Wi-Fi network infrastructure to solidify its leading
position in this market.
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best and most equitable way for people to find what
they're looking for. In addition to serving individual Internet
search users, Baidu provides an effective platform for businesses
to reach potential customers. Baidu's ADSs trade on the NASDAQ
Global Select Market under the symbol "BIDU". Currently, ten ADSs
represent one Class A ordinary share.
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home
advertising network on mass transportation systems, including buses
and subways. As of December 31, 2014,
VisionChina Media's advertising network included 92,469 digital
television displays on mass transportation systems in 19 of
China's economically prosperous
cities, including Beijing,
Guangzhou and Shenzhen, as secured by exclusive agency
agreements or joint venture contract. VisionChina Media has the
ability to deliver real-time, location-specific broadcasting,
including news, stock quotes, weather and traffic reports, and
other entertainment programming. For more information, please visit
http://www.visionchina.cn.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and 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 "will", "expects", "anticipates", "future",
"intends", "plans", "believes", "estimates" and similar statements.
Among other things, the quotations from management in this press
release contain forward-looking statements. Such statements involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
Further information regarding these and other risks is included in
the Company's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form F-1 and
its annual report on Form 20-F. 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
under applicable law.
For investor and media inquiries, please contact:
In China:
Ms.
Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86-134-2090-9426
E-mail: shuning.yi@visionchina.cn
In the United
States:
The Piacente Group, Inc.
Mr. Glenn Garmont
Tel: +1-212-481-2050
E-mail: visionchina@tpg-ir.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/visionchina-medias-mobile-internet-affiliate-announces-financing-transaction-led-by-baidu-300094069.html
SOURCE VisionChina Media Inc.