JAKKS Announces Closing of $19.3 Million Sale of Common Stock to Joint Venture Partner Hong Kong Meisheng Culture Company Ltd.
JAKKS Pacific, Inc. (NASDAQ: JAKK) announced that the Company closed the sale of 3,660,891 shares of the Company’s common stock to Hong Kong Meisheng Culture Company Ltd. (“Meisheng”) for a total purchase price of $19.3 million, and that Xiaoqiang Zhao, Executive Director of Hong Kong Meisheng Culture Company Ltd. and Chairman of the Board of its parent company Meisheng Cultural & Creative Corp., Ltd., joins JAKKS’ board of directors.
Stephen Berman, Chairman and Chief Executive Officer, stated: “We are pleased that Meisheng has increased their equity position in JAKKS and that Mr. Zhao has become a member of our board of directors. We are excited about the expanded opportunities in China that we anticipate will be available to us through our relationship with Meisheng.”
Xiaoqiang Zhao stated: “We are delighted to add to our shareholdings in JAKKS. We expect this step will strengthen our two companies’ strong strategic partnership. I’m also honored to join JAKKS’ board of directors. I will bring my decades of experience in the fields of consumer products and management to JAKKS and anticipate that we will work together to strengthen both companies’ businesses in the United States, China and other markets.”
Meisheng announced in March 2017 that it acquired 1,578,647 shares of the Company’s common stock in open market transactions. In addition to the joint venture companies established by Meisheng and JAKKS, Meisheng Cultural & Creative Corp., Ltd. has for many years been a key manufacturer for the Company.
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include BIG-FIGS™, XPV®, Max Tow™ and Friends, Disguise®, Moose Mountain®, Funnoodle®, Maui®, Kids Only!®; a wide range of entertainment-inspired products featuring premier licensed properties; pet products; and C’est Moi™, a skincare and performance make-up brand. Through JAKKS Cares, the company’s commitment to philanthropy, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkstoys), Twitter (@jakkstoys) and Facebook (JAKKS Pacific).
© 2017 JAKKS Pacific, Inc. All rights reserved.
Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific’s business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS’ products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.