Our strategy is a simple one. We will focus our resources to capture revenues from U.S. based operations, which we started over a year ago by our acquisition of Portables Unlimited in New York. With this sale, our revenues will be predominantly generated from our U.S. operations.
[…] We are actively seeking synergistical businesses to bring into Zoom and adding on more licensed retail stores of T-Mobile USA is a part of this plan.
Mr. Leo Gu, Zoom’s Chairman & CEO
Zoom Technologies, Inc. (ZOOM) is a holding company with subsidiaries that engage in manufacturing, R&D and sale of the latest generation mobile phones and related products, and also distribution of cellular service and products for T-Mobile USA. Company provides customized high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as building its own products under the brand names of Zoom and Leimone.
Zoom announced today the execution of a definitive agreement pursuant to which it will sell its China-based manufacturing, sales and marketing, and R&D subsidiaries, and that the proceeds of the sale will be used for the purchase of additional U.S.-based businesses.
On December 31, 2012, Zoom entered into a Share Purchase Agreement with the Beijing Zhumu Culture Communication Company, Ltd. for the sale to the Purchaser of the Company’s China based operations including 100% ownership of Beijing Nollec Wireless Company, 80% ownership of Tianjin Tongguang Group Digital Communication Company, Ltd. , 100% ownership of Profit Harvest Corporation, Ltd. and 100% ownership of Celestial Digital Entertainment, Ltd. with for approximately US$32 million. The final closing of the sale is anticipated to take place within the first quarter of 2013.
The Company intends to use the cash proceeds from the sale of the assets to acquire similar businesses in the U.S.
With less than 30MM shares issued and outstanding, the sale agreement adds $1+ to the ZOOM share/price.