Acorn Announces Share Repurchase Program
SHANGHAI, China--Acorn International, Inc. (NYSE: ATV), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, today announced that its Board of Directors has approved a share repurchase program, effective December 2007. Under the program, Acorn is authorized to repurchase up to an aggregate of US$30 million of its American Depositary Shares, or ADSs, representing its ordinary shares.
James Hu, Chairman and CEO of Acorn International commented, "The approval of the share repurchase program by our Board of Directors reflects our ongoing commitment to increase shareholder value and confidence that the current ADS price levels do not reflect our current potential value. In addition, we strongly believe that our available cash resources will allow us to implement a share repurchase program while continuing to pursue growth opportunities."
The repurchases will be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades, pursuant to a 10b5-1 plan (which if adopted, will allow Acorn to repurchase its ADSs during periods in which it may be in possession of material non-public information) or otherwise. The purchases will be made subject to restrictions relating to volume, price and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of our ADSs and other factors. The repurchase program is expected to continue over the next 4 months unless extended or shortened by the Board of Directors.
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among other things, Acorn's anticipated repurchase of Acorn ADSs and the expected duration of the repurchase program. Acorn may repurchase all $30 million of its ADSs, or no ADSs, or any amount in between, and lengthen or shorten the repurchase period, depending on the trading price of its ADSs, which may be positively or negatively impacted by the repurchase program, market conditions, determinations following the date of this announcement to use such funds for other purposes, or for other reasons. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to successfully introduce new products and services, including to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network; potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; and general economic and business conditions in China.
Acorn believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Acorn undertakes no obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
Contacts
Acorn International
Chen Fu, +86 21 5151 8888 (ext.2228)
Director of Investor Relations
ir@chinadrtv.com
or
Christensen
Roger Hu, +852 2117-0861
rhu@ChristensenIR.com
or
Christopher Gustafson, +1 480 614 3021
cgus@ChristensenIR.com
James Hu, Chairman and CEO of Acorn International commented, "The approval of the share repurchase program by our Board of Directors reflects our ongoing commitment to increase shareholder value and confidence that the current ADS price levels do not reflect our current potential value. In addition, we strongly believe that our available cash resources will allow us to implement a share repurchase program while continuing to pursue growth opportunities."
The repurchases will be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades, pursuant to a 10b5-1 plan (which if adopted, will allow Acorn to repurchase its ADSs during periods in which it may be in possession of material non-public information) or otherwise. The purchases will be made subject to restrictions relating to volume, price and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of our ADSs and other factors. The repurchase program is expected to continue over the next 4 months unless extended or shortened by the Board of Directors.
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among other things, Acorn's anticipated repurchase of Acorn ADSs and the expected duration of the repurchase program. Acorn may repurchase all $30 million of its ADSs, or no ADSs, or any amount in between, and lengthen or shorten the repurchase period, depending on the trading price of its ADSs, which may be positively or negatively impacted by the repurchase program, market conditions, determinations following the date of this announcement to use such funds for other purposes, or for other reasons. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to successfully introduce new products and services, including to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network; potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; and general economic and business conditions in China.
Acorn believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Acorn undertakes no obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
Contacts
Acorn International
Chen Fu, +86 21 5151 8888 (ext.2228)
Director of Investor Relations
ir@chinadrtv.com
or
Christensen
Roger Hu, +852 2117-0861
rhu@ChristensenIR.com
or
Christopher Gustafson, +1 480 614 3021
cgus@ChristensenIR.com
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