Huitao Technology Announces Shareholders' Approval of Disposal of its Ready-Mix Concrete Materials Business
NEW YORK, May 4, 2020 /PRNewswire/ -- Huitao Technology Co., Ltd. (Nasdaq: HHT) (the "Company", "we" or "HHT"), a company which is in the process of disposing its legacy ready-mix concrete materials business and transitioning into an innovative education service provider, today announced that it has held its annual meeting of shareholders on April 27, 2020, wherein its shareholders have approved the proposal to dispose of its legacy ready mix concrete business. Pursuant to the Share Purchase Agreement and related transactions dated March 31, 2020 by and among the Company, Xin Ao Construction Materials, Inc. ("Xin Ao"), the Company's wholly owned subsidiary, and Mr. Xianfu Han and Mr. Weili He (the "Purchasers"), the Company will sell 100% of the outstanding capital stock of Xin Ao to the Purchasers in exchange for cash payment of $600,000.
Management believes that disposal of the concrete material business is the most sustainable path for its next phase of growth. The Company expects to close the disposition upon satisfaction of all closing condition in short term.
About Huitao Technology Co., Ltd.
Huitao Technology is a holding company which is currently undergoing a shift to a dedicated education services provider, offering both online and offline innovative education services. Its business operations are conducted through its wholly-owned subsidiaries CACM Group NY, Inc. ("CACM"), Sunway Kids International Education Group Ltd. ("Sunway Kids"), Brave Millennium Limited, Chengdu Hengshanghui Intelligent Technology Co., Ltd. and its variable interest entities, Chengdu Hengshanghui Education Consulting Co., Ltd. Sunway Kids engages in the early childhood education service business, providing a well-structured system to day cares and preschools in China, including AI and robotic technologies, intellectual campus administration software as a service (SaaS) system and personalized education planning. Through Baytao LLC, a newly formed joint venture, the Company also anticipates providing tutoring programs in New York which includes online learning via a platform being built by CACM. For more information, please visit http://www.china-acm.com.
Safe Harbor / Forward-Looking Statements
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties once the transaction is complete, and HHT's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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