Ossen Innovation Announces Formation of Independent Special Committee to Consider "Going Private" Proposal

Rhea-AI Summary

Ossen Innovation Co., Ltd. (Nasdaq: OSN) announced the formation of a special committee to evaluate a preliminary non-binding proposal to go private, received on September 15, 2020. The committee, led by independent director Junhong Li, has engaged DLA Piper as legal counsel and plans to hire a financial advisor. The Board cautioned shareholders that no definitive offer or agreement has been reached, emphasizing the uncertainties surrounding this proposal. No updates will be provided unless legally mandated.

Positive

• Formation of an independent committee to explore going-private proposal.
• Engagement of legal counsel indicates serious consideration of the proposal.

Negative

• No assurance that a definitive offer will be made or agreement executed.
• Potential adverse effects on stock price if the transaction does not occur.

SHANGHAI, Sept. 22, 2020 /PRNewswire/ -- Ossen Innovation Co., Ltd. (the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that its Board of Directors (the "Board") has formed a special committee consisting of two independent, disinterested directors (the "Independent Committee"), Mr. Junhong Li and Mr. Zhongcai Wu, to consider the previously announced preliminary non-binding proposal letter (the "Going-Private Proposal") that the Board received on September 15, 2020.  Mr. Junhong Li will serve as chairman of the Independent Committee.  The Independent Committee has retained DLA Piper as its international legal counsel, and intends to retain an independent financial advisor in due course, to assist it in this process.

The Board cautions the Company's shareholders and others considering trading the Company's securities that the Board has just received the Going-Private Proposal and has not had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company's response to the proposal.  There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed relating to the proposed transaction or that this or any other transaction will be approved or consummated.  The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

About Ossen Innovation Co., Ltd.

Ossen Innovation Co., Ltd. manufactures and sells a wide variety of plain surface pre-stressed steel materials and rare earth coated and zinc coated pre-stressed steel materials. The Company's products are mainly used in the construction of bridges, as well as in highways and other infrastructure projects. The Company has two manufacturing facilities located in Ma'anshan, Anhui Province, China and Jiujiang, Jiangxi Province, China.

Safe Harbor Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 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 involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including but are not limited to, risks related to the expected timing and likelihood of completion of a potential transaction with Pujiang International Group Limited or any other party, including the risk that the potential transaction may not occur, and the risk that any announcements relating to the potential transaction could have adverse effects on the market price of the Company's stock, as well as risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's annual report on Form 20-F, as amended. All information provided in this press release is as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

For more information, please contact:

Wei Hua, Chief Executive Officer
Email: int.tr@ossengroup.com
Phone: +86-21-6888-8886
Web: www.osseninnovation.com

Investor Relations
GIC IR
Phone: +1-347-393-4230
Email: info@goldenir.com

View original content:http://www.prnewswire.com/news-releases/ossen-innovation-announces-formation-of-independent-special-committee-to-consider-going-private-proposal-301135574.html

SOURCE Ossen Innovation Co., Ltd.

FAQ

What is the recent announcement by Ossen Innovation regarding OSN?

Ossen Innovation announced the formation of a special committee to evaluate a going-private proposal.

Who is part of the independent committee for the OSN going-private proposal?

The independent committee is chaired by Junhong Li and includes Zhongcai Wu.

When was the going-private proposal received by Ossen Innovation?

The going-private proposal was received on September 15, 2020.

What risks are associated with the Ossen Innovation going-private proposal?

There are risks that a definitive offer may not be made and that the transaction could adversely affect the market price of OSN shares.

What legal steps has Ossen Innovation taken regarding the going-private proposal?

Ossen Innovation has retained DLA Piper as its international legal counsel to assist in evaluating the proposal.