Acorn International Terminates Share Repurchase Plan

Rhea-AI Summary

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.

Positive

• Termination of the buyback program indicates potential shareholder value enhancement if a take-private offer is forthcoming.
• Previous repurchase of approximately 10,000 ADSs shows ongoing commitment to shareholder returns.

Negative

• Termination of the share repurchase may signal a lack of confidence in current stock price stability.
• The decision creates uncertainty regarding the company's capital allocation strategy amidst market volatility.

SHANGHAI, July 22, 2020 /PRNewswire/ -- Acorn International, Inc. (NYSE: ATV) ("Acorn" or the "Company"), a leading marketing and branding company in China, today announced that it has terminated its previously authorized 10b5-1 share repurchase program due to questions and information Acorn has received suggesting that a new take private offer for the Company may be forthcoming soon.  Accordingly, the Company has determined, out of an abundance of caution, that it would be prudent to terminate the share repurchase program.

Acorn's Board of Directors originally authorized the repurchase of up to US$2.5 million worth of its American depositary shares ("ADSs") over a 12-month period. As of July 20, 2020, the Company had purchased approximately 10,000 ADSs at an average price of US$14.34 per ADS.

About Acorn International, Inc.

Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. For more information visit www.acorninternationalgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipates," "believes," "estimates," "expects," "future," "going forward," "intends," "outlook," "plans," "target," "will," "potential," and similar statements, and include Acorn's expectation that a revised take private offer for the Company may be forthcoming soon. Such statements are based on current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond Acorn's control, including the extent and duration of the adverse impact of COVID-19, the availability of financing, and the performance of the capital markets in the U.S. and elsewhere, each of which may cause actual results, performance, actions, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

Investor Contacts:

Contact:
Compass Investor Relations       
Ms. Elaine Ketchmere, CFA         
Phone: +1-310-528-3031           
Email: Eketchmere@compass-ir.com

View original content:http://www.prnewswire.com/news-releases/acorn-international-terminates-share-repurchase-plan-301097897.html

SOURCE Acorn International, Inc.

FAQ

What was the reason for Acorn International's termination of the share repurchase program?

Acorn International terminated the program due to indications of a potential take-private offer.

How much was Acorn International's share repurchase program worth?

The share repurchase program was authorized for up to $2.5 million.

What impact does terminating the share repurchase program have on ATV's stock price?

The termination may create uncertainty among investors, potentially impacting ATV's stock price negatively.

How many American depositary shares (ADSs) did Acorn International purchase before terminating the repurchase program?

Acorn International purchased approximately 10,000 ADSs before the termination.