Cogo Shareholders Approve Domicile Change to the Cayman Islands -- Opens the Door for a Hong Kong Dual-Listing of Cogo Shares
SHENZHEN, China, July 27, 2011 /PRNewswire/ -- Cogo Group, Inc. (Nasdaq: COGO), the leading online platform of Core Technologies for the Small and Medium Enterprise market in China, today announced that its shareholders approved a proposal by the Cogo Board of Directors to change the company's domicile to the Cayman Islands. This domicile change will provide the company with the option to dual-list its shares of common stock on the Hong Kong exchange while also continuing to trade on Nasdaq, and at the same time, maintain the existing levels of regulatory scrutiny and financial transparency. The Company expects to complete the domicile process to the Cayman Islands within a few weeks.
Approximately 83% of the outstanding shares of Cogo's common stock voted either by proxy or in person at the company's special shareholder meeting held on July 25, 2011 in Shenzhen, China. Total shareholder votes in favor of the proxy were 28.2 million, or 78.7% of the total, and withheld votes were 1.7 million, or approximately 6% of the total.
Jeffrey Kang, CEO of COGO said, "The Board of Cogo and I are pleased that the shareholders overwhelmingly approved the proxy vote to change our domicile to the Cayman Islands. This allows us the flexibility to pursue a dual-listing of Cogo shares on the Hong Kong exchange while maintaining, at a minimum, the same level of regulatory scrutiny and financial transparency. I believe that a dual-listing of shares on the Hong Kong Exchange could effectively broaden our shareholder base and enhance shareholder value."
About Cogo Group, Inc.:
Cogo is the leading online platform of Core Technologies for the 42 Million Small and Medium Enterprises ("SME") in China. Cogozon.com, currently serving Cogo's 1,500 SME and 100 Blue-Chip customers, is an e-commerce platform for customers in tech manufacturing sectors (Smart Meters, Alternative Energy, Autos, Healthcare, Tablets and HDTV), offering designs, product, applications and technical support. Cogo's transaction-based online revenue model centers on its Applications Store, offering design solutions and embedded software, and its Product Store, which sells standardized Electronic products. Cogo operates Cogopedia.com, a unique web-based business networking platform to engage with 50,000 electronic and software engineers, collecting one million data inputs daily. Cogo offers technology from 400 suppliers, including 50 global players like Broadcom, Xilinx, Freescale, Microsoft and Atmel. Cogo has 600 employees, with 300 in engineering and 200 in direct sales and 15 service centers across China.
Safe Harbor Statement:
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such information is based upon expectations of our management that were reasonable when made, but may prove to be incorrect. All such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.
SOURCE Cogo Group, Inc.