Cleantech Solutions International Enters into Exclusivity Agreement with Channel Power for Potential Acquisition of Touch Media
(4 months ago)
HONG KONG: Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (Nasdaq: "CLNT") today announced that its wholly-owned subsidiary, EC Advertising Limited ("EC Advertising"), has entered into an exclusivity agreement with the shareholder of Channel Power Limited ("Channel Power"), regarding a potential acquisition by EC Advertising of not less than 73pc of Channel Power, which in turns holds 70pc of the issued share capital of Touch Media Interactive (HK) Company Limited ("Touch Media"), an advertising agency in Hong Kong. As a result, EC Advertising will in effect own 51pc of the total voting rights of Touch Media.
"CLNT has a strong mindset in the global sharing economy, technology and media businesses, which perfectly complements our business development plan," said Yik Chung Chong, Director of Channel Power and CEO of Touch Media. "After establishing ourselves as Hong Kong's leading in-taxi interactive media companies, we look forward to this potential collaboration with CLNT, which can support our efforts to expand our advertising coverage to more taxis and their passengers. At the same time, we will consider replicating this business model in different overseas markets, reaching international taxi passengers en route to their destinations."
"We are excited about this potential partnership with Touch Media," said Parkson Yip, COO of Cleantech Solutions. "There are currently about 18,000 taxis on the streets of Hong Kong, of which 1,800 have installed Touch Media's touchscreen consoles, which provide passengers with promotional advertisements related to their particular location and can act as a useful travel guide for tourists. By joining Touch Media and CLNT, we can explore the in-vehicle advertising business through their existing taxi network within Hong Kong and plan to increase the base of taxis using their touchscreen consoles, and further expand into other vehicles."
"From there, we are planning to expand our vision in the concept of a 'mobilized WiFi city' where users, especially foreign visitors, can easily gain access to a WiFi signal through the Touch Media consoles installed in the taxi. Moreover, we plan to develop a 'Sharing Taxi APP' which will allow different passengers going to nearby places to share the same taxi, reducing transportation costs to the passengers while benefiting the environment by sharing trips. We plan for Hong Kong and Macau to be our pilot cities and will expand our business coverage to overseas markets in long run.
"The Touch Media console has obtained safety certifications from transportation departments in both Hong Kong and China. It is a valuable in-car terminal where we can develop further value-added functions to expand its business opportunities. The 'mobilized WiFi network' and 'Sharing Taxi' initiatives are just the beginning. We will integrate all these further into our blockchain-powered sharing economy backbone, so in-car media consoles will become another crucial part of our sharing economy ecosystem."
There can be no assurances that the parties may enter into any agreement to do a transaction, and even if an agreement is entered into, there can be no assurances that such transaction will be consummated.