CreateAI Holdings (formerly TuSimple) Board of Directors Unanimously Rejects Unsolicited Proposal from Steel Partners and Camac Partners

Rhea-AI Summary

CreateAI Holdings (OTCMKTS: TSPH), formerly TuSimple Holdings, announced its Board of Directors has unanimously rejected an unsolicited acquisition proposal from Steel Partners Holdings L.P. and Camac Partners The proposal, received on November 27, 2024, offered to acquire all remaining shares at $0.46 per share.

The Board determined the offer significantly undervalued the company and was not in the best interests of shareholders. Board Chairman Cheng Lu emphasized the company's commitment to long-term value creation through its strategy of developing generative AI technologies and applying them to digital entertainment content production.

Positive

• Board's unanimous decision indicates strong confidence in company's intrinsic value
• Clear strategic focus on generative AI and digital entertainment content production

Negative

• Trading on OTC markets rather than major exchanges indicates potential market accessibility issues
• Unsolicited buyout offer at $0.46 per share suggests market values company at low levels

SAN DIEGO, Dec. 31, 2024 /PRNewswire/ -- CreateAI Holdings Inc., formerly TuSimple Holdings Inc. (OTCMKTS: TSPH) ("CreateAI" or the "Company"), a global artificial intelligence technology company, today announced that its Board of Directors (the "Board") has unanimously rejected the unsolicited proposal, received on November 27, 2024, from Steel Partners Holdings L.P. and Camac Partners LLC to acquire all the shares of CreateAI that they do not already own for $0.46 per share.

After careful and thorough consideration, the Board determined that the unsolicited proposal did not reflect an offer close to the fair market value of the company, and therefore determined it not to be in the best interests of the Company and its stockholders.

"Our Board is committed to driving long term value for all stockholders and regularly reviews our strategy and evaluates opportunities to achieve that goal," said Cheng Lu, Chairman of the Board. "We are confident that CreateAI has significant value creation potential. We believe that our integrated approach of developing generative AI technologies and applying our technologies to the production of digital entertainment content will enable us to be a leader in the industry."

About CreateAI

CreateAI (formerly TuSimple) is a global artificial intelligence company with offices in US, China, and Japan. The company is pioneering the future of digital entertainment content production, seamlessly blending cutting-edge generative AI technology with the creativity of world-class talent. Our mission is to redefine the boundaries of what's possible in digital storytelling by developing immersive, captivating, and visually stunning experiences that resonate with audiences on a global scale.

Investor Relations Contact:
ICR for CreateAI
CreateAI.IR@icrinc.com 

Media Contact:
Brad Burgess
ICR, LLC
CreateAI.PR@icrinc.com 

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SOURCE CreateAI Holdings Inc

FAQ

Why did CreateAI Holdings (TSPH) reject the Steel Partners and Camac Partners buyout offer?

CreateAI's Board unanimously rejected the $0.46 per share offer because they determined it did not reflect the company's fair market value and was not in the best interests of stockholders.

What was the acquisition price offered for TSPH shares in December 2024?

Steel Partners and Camac Partners offered to acquire the remaining shares of CreateAI Holdings (TSPH) for $0.46 per share.

What is CreateAI Holdings' (TSPH) current business strategy?

CreateAI Holdings focuses on developing generative AI technologies and applying them to digital entertainment content production, aiming to become a leader in the industry.

When did TuSimple Holdings change its name to CreateAI Holdings (TSPH)?

The press release indicates the company was formerly known as TuSimple Holdings, though the specific date of the name change is not mentioned in the release.