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|NQ Mobile Inc. Releases a Letter to Shareholders from the Chairman of the Board|
When I accepted the position of Chairman of the Board in 2014, I was focusing on two priorities. The first was to make sure our business was positioned for the future development, and second was for our shareholders to recognize the value of what we had already created. In order to seize the opportunities arising from the smart car industry, and to position the company for that future development, the company acquired a controlling stake of
Looking back over this monetization effort, our goal was to sell certain existing businesses for cash and for the underlying value of our businesses to ultimately be unlocked and recognized by our shareholders.
The divestment and sales process took much longer than anticipated, for a variety of reasons that were outside of our control. This extended length of time, combined with the adjustments in ultimate divestment and sales path, has led to shareholders' uncertainties and concerns during and subsequent to the completion of the divestment and sales transaction. I'd like to share some information related to this divestment and sales transaction in order to clear up any lingering questions that our shareholders may have.
First, I believe that all material aspects of the FL Mobile divestment and the sale of Beijing Showself's live social video businesses were publicly disclosed, including my participation and role in the purchasing group. Any related party elements pertaining to my involvement in the purchasing group were considered by the Board's independent directors and audit committee, who approved all relevant matters with the support of professional appraiser. Second, Tongfang Investment Fund Series SPC ("Tongfang") is an independent third party that led the purchasing group, which I joined anew for this specific transaction, to purchase from the Company certain equity interests of FL Mobile and Beijing Showself. I have been facilitating the transaction and acted as a trustee for our Company when the purchasing group requested that the shares should be registered under a new individual shareholder to satisfy structural arrangements related to future capital market requirements of the divested assets. The arrangements are made to ensure the successful completion of the transaction. The transaction completed on
While the prolonged process and complications associated with the divestment and sales transaction left undesired uncertainties and frustrations among the shareholders, I believe the outcome will be undeniably positive for our future. The Company's cash, cash equivalents, term deposits and restricted cash as of the last reported results on
An important part of our monetization plans contemplated leveraging our cash balance position to achieve specific shareholder friendly actions including buybacks. On
As we have completed our divestment and sales transaction, it is important to focus on our new business and we are excited about our future. The management team is moving forward swiftly and expect to commercially launch our smart ride business in the summer. This will include forming more partnerships that will be important to the ecosystem around this unique passenger-centric service. These partnerships will continue to validate the opportunity and we look forward to sharing these with you in the coming weeks and months ahead.
I am keenly aware of the past frustrations among shareholders, but want you to know that our plans and goals were specifically initiated to help us be poised for what we are doing right now in our business plans. We must now deliver and execute on these business objectives and earn the confidence of our shareholders again. We will also continue to share our progress with our shareholders and communicate with the market as we deliver results.
On behalf of the Management Team, I wish to express appreciation and gratitude for all of your support and patience. We are well positioned for the future and are determined to enable our shareholders to benefit from our businesses going forward.
With sincerity and determination,
About NQ Mobile Inc.
Forward Looking Statements
This news release contains "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. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the