Hollysys CEO Informs Company of Recent Share Sales

Rhea-AI Summary

Hollysys Automation Technologies (NASDAQ: HOLI) announced that its CEO, Dr. Changli Wang, has sold a portion of his shares for personal financial planning.

Dr. Wang retains approximately 80% of his pre-sale holdings and has no plans for additional sales before the closing of a going-private transaction with Ascendent Capital Partners (ACP).

Management, including Dr. Wang, remains committed to meeting the closing conditions of the merger agreement with ACP.

Positive

• Dr. Changli Wang retains 80% of his pre-sale holdings, showing confidence in the company's future.
• The sale was for personal financial planning and does not affect operational plans.
• Commitment from management to meet closing conditions for the going-private transaction with ACP indicates stability.

Negative

• CEO share sale might signal to some investors a lack of confidence or potential concerns.
• No detailed financial figures provided to assess the impact on stock performance.
• Potential uncertainties until the going-private transaction is satisfactorily closed.

Expects to maintain majority of his holdings in the Company in anticipation of the going private transaction closing

BEIJING, May 22, 2024 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company") has been informed by its Chief Executive Officer, Dr. Changli Wang, that his recent sale of Company shares was made solely for his own personal financial planning needs.

Dr. Wang has informed the Company that following the sale, he holds approximately 80% of his pre-sale holdings in the Company. As the share sale was a personal decision, it does not affect the Company's going private transaction or operational plans. Dr. Wang has informed the Company that he does not intend to sell any further shares in the Company before the closing of the going private transaction with Ascendent Capital Partners ("ACP").

The Company's management, including Dr. Wang, is committed to work towards the satisfaction of the closing conditions of the going private transaction by the parties in accordance with the merger agreement.

About Hollysys Automation Technologies Ltd.

Hollysys is a leading automation control system solutions provider in China, with overseas operations in eight other countries and regions throughout Asia. Leveraging its proprietary technology and deep industry know-how, Hollysys empowers its customers with enhanced operational safety, reliability, efficiency, and intelligence which are critical to their businesses. Hollysys derives its revenues mainly from providing integrated solutions for industrial automation and rail transportation. In industrial automation, Hollysys delivers the full spectrum of automation hardware, software, and services spanning field devices, control systems, enterprise manufacturing management and cloud-based applications. In rail transportation, Hollysys provides advanced signaling control and SCADA (Supervisory Control and Data Acquisition) systems for high-speed rail and urban rail (including subways). Founded in 1993, with technical expertise and innovation, Hollysys has grown from a research team specializing in automation control in the power industry into a group providing integrated automation control system solutions for customers in diverse industry verticals. As of June 30, 2023, Hollysys had cumulatively carried out more than 45,000 projects for approximately 23,000 customers in various sectors including power, petrochemical, high-speed rail, and urban rail, in which Hollysys has established leading market positions.

Safe Harbor Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company; growth in financial and operational performance of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident," or similar expressions involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contact Information

Company Contact:
Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-5898-1386
investors@hollysys.com 

Media Contacts (Hong Kong and New York):
Brunswick Group
hollysys@brunswickgroup.com 

Daniel Del Re (Hong Kong)
ddelre@brunswickgroup.com
+852 9255 5136

Libby Lloyd (New York)
llloyd@brunswickgroup.com
+1 347 283 3871

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SOURCE Hollysys Automation Technologies Ltd

FAQ

Why did Hollysys CEO Dr. Changli Wang sell shares?

Dr. Wang sold shares for personal financial planning needs.

What percentage of his holdings does Dr. Changli Wang retain after the sale?

Dr. Wang retains approximately 80% of his pre-sale holdings.

Will Dr. Changli Wang sell more shares before the going-private transaction?

Dr. Wang has stated he does not intend to sell any further shares before the going-private transaction closes.

How does Dr. Wang's share sale affect Hollysys' going-private transaction?

The share sale does not affect the company's going-private transaction or operational plans.

Who is the partner in the going-private transaction with Hollysys?

The partner in the going-private transaction is Ascendent Capital Partners (ACP).