Acorn International, Inc. (NYSE: ATV) announced the successful completion of its merger with First Ostia Port Ltd., effective January 29, 2021. Each outstanding share will be exchanged for $1.05 in cash, while American Depositary Shares (ADSs) will be valued at $21.00. Shareholders will receive instructions for certificate surrender. The merger was mainly financed by East West Bancorp. Following the merger, trading of Acorn's ADSs will cease, and the company plans to deregister with the SEC, thus suspending its reporting obligations.
On January 22, 2021, Acorn International, Inc. (ATV) announced shareholders approved the merger proposal with First Ostia Port Ltd. Approximately 98% of voting rights supported the merger plan, allowing the company to transition into a privately held entity. Following the merger's completion, Acorn's American depositary shares will be delisted from the New York Stock Exchange. Completion of the merger is expected soon, contingent upon meeting specific conditions.
Acorn International (NYSE: ATV) announced an Extraordinary General Meeting (EGM) on January 22, 2021, to discuss a proposed merger with First Ostia Port Ltd. and Second Actium Coin Ltd. If approved, Acorn will become a privately held company, and its American Depositary Shares (ADSs) will be delisted from the New York Stock Exchange. The Board has unanimously endorsed the merger, recommending shareholders vote in favor. Record shareholders in the Cayman Islands as of January 18, 2021, are eligible to vote, and ADS holders must instruct Citibank to vote on their behalf by December 21, 2020.
Acorn International (NYSE: ATV) announced a definitive Merger Agreement with First Ostia Port Ltd. and its subsidiary, Second Actium Coin Ltd. The all-cash transaction will see Acorn's ordinary shares exchanged for $1.05 each, representing a 44.1% premium over the last trading price. Each American Depositary Share (ADS) will convert to $21.00. The merger is expected to close in Q4 2020, pending shareholder approval. The Controlling Shareholder plans to use debt funding for the acquisition. Post-merger, Acorn will operate as a private company and will no longer be listed on NYSE.
Acorn International, Inc. (NYSE: ATV) reported its preliminary financial results for Q2 2020, with net revenues of US$8.7 million, a 3.6% year-over-year increase. However, gross profit declined by 0.8% to US$6.0 million, resulting in a reduced gross margin of 69.4%. The company faced a loss from continuing operations of US$0.7 million, worsening from US$0.4 million the previous year. Positive results included a US$2.5 million gain from the sale of E-Money shares. For H1 2020, total revenues were US$16.7 million, down 1.9% due to COVID-19 effects.
Acorn International, Inc. (NYSE: ATV) announced on August 18, 2020, that it received a non-binding proposal from Executive Chairman Robert W. Roche to acquire all outstanding shares not owned by the Buyer Vehicle. The proposed purchase price is US$15.22 per American Depositary Share or US$0.761 per ordinary share. The Buyer Vehicle, which Roche will form, aims to control about 75% of outstanding shares. Funding for the acquisition is expected to be sourced through third-party debt, with conditions including successful due diligence.
Acorn International (NYSE: ATV) has terminated its $2.5 million 10b5-1 share repurchase program due to indications of a potential take-private offer. Until July 20, 2020, Acorn had repurchased about 10,000 American depositary shares at an average price of $14.34 each. The decision was made to prioritize shareholder interest amid uncertainties related to the potential offer.