Kingtone Wirelessinfo Solutions Hldg Ltd (NASDAQ: KONE) shares rose after the company disclosed the sale of assets to C Media, one of the leading mobile service and technology providers of long distance travel
The assets to be exchanged by the Company consists of the equity interests of the Company in its principal operating subsidiary. The assets of C Media consisting primarily of the equity interests of C Media's operating subsidiaries in China. The Asset Exchange was based on the valuation reports of both C Media and the Company made by an independent third-party appraisal firm.
The Company also agreed to pay the difference of the fair market values between C Media and the Company by issuance of 185,412,599 ordinary shares and 1,000,000 preferred shares of the Company to C Media.
The preferred shares to be issued by the Company are expected to have an initial per share voting weight of 399 votes to the major shareholders of C Media. The details of the Asset Exchange can be found in the Company's Form 6-K and its exhibits filed with SEC on the same date.
Kingtone is a China-based developer and provider of mobile enterprise solutions. The Company's products known as mobile enterprise solutions, extend a company's or enterprise's information technology systems to include mobile participants.
C Media Limited is one of the leading mobile service and technology providers of long-distance travel and the pioneer and leader of the railway Wi-Fi market in China. C Media's core mobile application product Luokuang is made as a Location-based Service social contents and service distribution platform.
Shares in Kingtone perked $1.69, or 36.1%, to $6.37.
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