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Wecast Network, Inc. (NASDAQ: WCST)

Wecast Network, Inc. (NASDAQ: WCST) (“Wecast” or “WCST or the “Company”) is happy to declared that it has accomplished a definitive agreement to sell to BT Capital Global Limited (an associate of WCST’s Chairman Bruno Wu), the issued and outstanding stock that WCST holds in three separate non-core assets. In exchange for the issued and outstanding stock, WCST will receive consideration of RMB100 million (about $14.75 million USD at current exchange rates) in a combination of cash and publicly traded stock to be paid to WCST within one year of closing. A minimum of 20% of the total consideration to WCST will be paid in cash (about $2.95 million USD). If any portion of the consideration is in the form of publicly traded stock, the securities will represent a public company associated with BT Capital, in an industry related to WCST’s and with an average daily trading value of at least $146,000 USD. A fairness opinion, or an independent opinion on the financial fairness of the projected transaction, will be conducted by a third-party valuation firm before the consideration is delivered to WCST.
The assets being sold to BT Capital Global Limited include:
WCST’s 80% equity interest in Zhong Hai Shi Xun Media;
WCST’s 13% equity interest in Nanjing Tops Game;
A portion of WCST’s 40% total equity interest in the recently declared Pantaflix JV, which will leaves WCST with a remaining 15% stake post transaction.
The impetus behind the asset sales of Zhong Hai Shi Xun Media and Nanjing Tops Game is to streamline the future operations and auditing of the WCST company as a whole by eliminating and monetizing legacy non-core businesses. The sale of a portion of WCST’s equity ownership in the Pantaflix JV and the resulting equity ownership percentage, allows WCST to realize gains and still benefit from the JV’s future potential upside.

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