SHENZHEN,
China and TORTOLA, British Virgin
Islands , Oct. 22, 2020 /PRNewswire/ -- Nam Tai
Property Inc. ("Nam Tai" or the
"Company") (NYSE Symbol: NTP) today provided an update on the
litigation filed by IsZo Capital LP (together with its affiliates,
"IsZo") against the Company in the Eastern Caribbean Supreme Court
in the High Court of Justice in the British Virgin Islands (the "Court").
Following a Court hearing on October 19,
2020, the interim injunction previously ordered by the Court
on October 14, 2020, expired, in lieu
of which Nam Tai voluntarily agreed
to provide certain undertakings to the Court. These undertakings
provide restrictions that are essentially similar to those imposed
by the temporary injunction, and will remain in place until the
Court has the opportunity to consider additional details and
evidence related to these matters. A ruling regarding the
undertakings is expected following a subsequent hearing scheduled
for November 30, 2020. The trial at
which the main claims in the litigation will be heard is scheduled
to commence on January 29, 2021, and
is expected to be heard on various dates through early March 2021.
The Company strongly believes IsZo's litigation to be baseless
and it intends to defend itself vigorously in relation to the
claims made.
Nam Tai's private placement
transaction with affiliates of Kaisa Group Holdings Ltd. ("Kaisa")
and a large-scale integrated financial group based in Hong Kong was necessary in order to mitigate
meaningful risks to the Company's financial stability triggered by
IsZo's actions against Nam Tai.
These risks included and were not limited to the following:
- In the days prior to the transaction, Nam Tai's lending banks notified Nam Tai that substantial uncertainties may be
cast upon the Company's operations and management control in light
of recent actions taken by IsZo.
- The difficulties which small real estate companies, such as
Nam Tai, face in obtaining bank
financing in China. If
Nam Tai were to lose its
relationship with Kaisa, which could be the case if IsZo's majority
slate of nominees were elected to the Board, the Company would face
significant risk of key loans being canceled, leading to
substantial issues with its operating and construction works.
- The requisition notice and further actions related to a
potential change in control pursued by IsZo could be a material
adverse change which would trigger an early repayment of
outstanding loans demanded by the banks under relevant loan
covenants. Such risk has not been made clear by IsZo.
The Company will continue to take actions in the best interest
of all shareholders. As part of its strategy, Nam Tai is committed to building the Company
into a leading operator of industrial ecosystems in China.
Forward-looking Statement and Factors that Could Cause our
Share Price to Decline
Certain statements included in this press release, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "might", "can",
"could", "will", "would", "anticipate", "believe", "continue",
"estimate", "expect", "forecast", "intend", "plan", "seek", or
"timetable". These forward-looking statements, which are subject to
risks, uncertainties, and assumptions, may include projections of
our future financial performance based on our growth strategies and
anticipated trends in our business and the industry in which we
operate. These statements are only predictions based on our current
expectations about future events. There are several factors, many
beyond our control, which could cause results to differ materially
from our expectation. These risk factors are described in our
Annual Report on Form 20-F and in our Current Reports filed on Form
6-K from time to time and are incorporated herein by reference. Any
of these factors could, by itself, or together with one or more
other factors, adversely affect our business, results of operations
or financial condition. There may also be other factors currently
unknown to us, or have not been described by us, that could cause
our results to differ from our expectations. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. You should not rely upon
forward-looking statements as predictions of future events. These
forward-looking statements apply only as of the date of this
announcement; as such, they should not be unduly relied upon as
circumstances change. Except as required by law, we are not
obligated, and we undertake no obligation, to release publicly any
revisions to these forward-looking statements that might reflect
events or circumstance occurring after the date of this press
release or those that might reflect the occurrence of unanticipated
events.
ABOUT NAM TAI PROPERTY INC.
We are a real estate developer and operator, mainly conducting
business in Mainland China. Our main land resources are located in
the Guangdong-Hong Kong-Macao
Greater Bay Area ("Greater Bay Area") and Wuxi, China, of which the three plots in
Shenzhen will be developed into
Nam Tai Inno Park, Nam Tai Technology Center and Nam Tai Inno Valley. We plan to build these
technology parks into landmark parks in the region and provide
high-quality industrial offices, industrial service spaces and
supporting dormitories to the tenants. Based on the experience of
developing and operating technology parks and an industrial
relationship network accumulated over the past 40 years, we have
also exported the operation model of technology parks to other
industrial properties. Through an asset-light model, we have leased
industrial properties for repositioning and business invitation. We
will also expand the commercial and residential property business
in China as an auxiliary
development strategy of the Company. As the growth prospects of
China maintain, we shall seize
development opportunities in the Greater Bay Area and other first-
and second-tier cities in China,
and continue to strengthen and expand the business of industrial
real estate, and commercial and residential properties. Nam Tai
Property Inc. is a corporation registered in the British Virgin Islands and listed on the New
York Stock Exchange (Symbol: "NTP"). Please refer to our corporate
website (https://www.namtai.com/) or the SEC website (www.sec.gov)
for our press releases and financial statements.
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SOURCE Nam Tai Property Inc.