IsZo Capital Provides Update Regarding Status of Lawsuit to Invalidate Nam Tai’s Dilutive Private Placement

Rhea-AI Summary

IsZo Capital Management LP, holding approximately 11% of Nam Tai Property's shares (NYSE:NTP), has provided an update on its lawsuit against Nam Tai and affiliated companies, including Kaisa Group and West Ridge. The lawsuit, filed in October 2020, challenges a $170 million private placement that diluted IsZo's ownership by increasing Kaisa-Greater Sail's stake from 23.9% to 43.9%. The trial concluded on February 24, 2021, with a ruling expected in early March. IsZo plans to update shareholders post-ruling and encourages them to visit www.FixNTP.com for more information.

Positive

• IsZo holds a significant stake (11%) in Nam Tai, empowering shareholder influence.
• IsZo aims for a Special Meeting to potentially reconstitute the Board of Directors.

Negative

• The lawsuit indicates dissatisfaction with management's actions and potential dilution effects on shareholder value.
• Kaisa Group's increased ownership after the private placement raises concerns about control over Nam Tai.

IsZo Capital Management LP (together with its affiliates, “IsZo”), which beneficially owns approximately 11% of the outstanding shares¹ of Nam Tai Property Inc. (NYSE:NTP) (“Nam Tai” or the “Company”), today provided an update regarding its lawsuit in the Eastern Caribbean Supreme Court against Nam Tai, Kaisa Group Holdings Limited’s (HKG:1638) wholly-owned subsidiary Greater Sail Limited (“Kaisa-Greater Sail”) and West Ridge Investment Company Limited (“West Ridge”). In October 2020, IsZo filed a lawsuit against Nam Tai after the Company announced a $170 million private placement that distributed more than 16 million common shares to Kaisa-Greater Sail, taking its ownership from 23.9% to 43.9% of the outstanding shares, and more than 2.6 million common shares to West Ridge. The lawsuit contends that Kaisa allies currently in control of Nam Tai initiated the dilutive transaction in response to IsZo obtaining requisite support to convene a meeting of shareholders (the “Special Meeting”), whereat investors could vote to reconstitute the Company’s Board of Directors.

The trial in the Eastern Caribbean Supreme Court concluded on February 24, 2021, and we have been advised to expect a ruling in early March.

Following the Court’s ruling, IsZo intends to provide a subsequent update to shareholders. We invite shareholders to visit www.FixNTP.com to review IsZo’s statement of claim and other relevant materials.

Shareholders interested in learning more about IsZo’s action and the overall Special Meeting process should contact our solicitor, Saratoga Proxy Consulting, at info@saratogaproxy.com or (212) 257-1311. We also encourage shareholders to learn more about our slate and its strategic vision by visiting www.FixNTP.com.

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¹ Based upon 39,197,991 shares outstanding immediately prior to the disputed private placement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210225005284/en/

FAQ

What is IsZo Capital Management's stake in Nam Tai Property (NTP)?

IsZo Capital Management beneficially owns approximately 11% of Nam Tai Property's outstanding shares.

What was the basis of IsZo's lawsuit against Nam Tai (NTP)?

The lawsuit challenges a $170 million private placement that significantly increased Kaisa-Greater Sail's ownership in Nam Tai.

When was the trial for IsZo's lawsuit against Nam Tai concluded?

The trial in the Eastern Caribbean Supreme Court concluded on February 24, 2021.

What outcome does IsZo seek from the lawsuit regarding Nam Tai (NTP)?

IsZo aims to reconstitute the Board of Directors through a Special Meeting of shareholders.

When can shareholders expect a ruling on IsZo's lawsuit against Nam Tai?

A ruling on the lawsuit is expected in early March 2021.