JINJIANG, Fujian Province, China, June 29, 2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Capital Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that the class action litigation brought against the Company and the individual defendants has been concluded and administration of the settlement will be supervised by the United States District Court for the Southern District of New York (the "Court").
The Company previously disclosed that it had reached an agreement to settle the outstanding class action litigation. On February 6, 2015, the Company and the individual defendants reached an agreement in principle to settle the class action litigation brought against the Company in consideration of the payment by the Company of $850,000, consisting of $310,000 payable in cash and $540,000 to be issued in the Company's common shares. On January 4, 2016, the Court held a final hearing to consider approval of the settlement, and on April 22, 2016, the Court issued its Memorandum and Order approving the settlement.
Under the terms of the settlement, the number of shares of common stock represented by the $540,000 stock settlement amount is required to be determined based upon the average closing transaction price of the Company's common stock during the ten trading days preceding the date of the final hearing, or January 4, 2016. Therefore, under the terms of the settlement, the Company was obligated to issue 554,415 shares of common stock (which equates to 69,302 shares after the 1 for 8 reverse stock split recently implemented by the Company), which will be freely tradeable when distributed.
Subsequent to the Court's final approval of the settlement, counsel for the lead plaintiffs sought to change the date for the determination of the number of shares issuable in the settlement, asking that the Court to substitute the date of the final order approving the settlement for the date of the final hearing currently in the settlement documents, over the objection of the defendants. The action suggested by counsel for the lead plaintiffs would have resulted in the issuance by the Company of substantial number of additional shares of the Company's common stock in the settlement since the market value of the Company's common stock had dropped in the time period since January 4, 2016.
On June 20, 2016, the Court denied the request by the counsel for the lead plaintiffs to modify the terms of the settlement. As a result of the Court's order, the terms and provisions of the settlement remain unchanged. The Company previously delivered the cash and the stock payable in the settlement to the agent designated in the settlement documents. Therefore, the class action litigation has been concluded. The settlement is being administered by an independent agent appointed by the Court, and is being supervised by the Court. The Company does not expect to have any further involvement in the matter, and is not aware of the expected timing of the distribution of net settlement proceeds.
About China Ceramics Co., Ltd.
China Ceramics Co., Ltd. is a leading manufacturer of ceramic tiles in China. The Company's ceramic tiles are used for exterior siding, interior flooring, and design in residential and commercial buildings. China Ceramics' products, sold under the "Hengda" or "HD", "Hengdeli" or "HDL", the "TOERTO" and "WULIQIAO" brands, and the "Pottery Capital of Tang Dynasty" brands, are available in over 2,000 style, color and size combinations and are distributed through a network of exclusive distributors as well as directly to large property developers. For more information, please visit http://www.cceramics.com.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, without limitation, the continued stable macroeconomic environment in the PRC, the PRC real estate and construction sectors continuing to exhibit sound long-term fundamentals, our ability to bring additional capacity online going forward as our business improves, our customers continuing to adjust to our product price increases, our ability to sustain our average selling price increases and to continue to build volume in the quarters ahead, and whether our enhanced marketing efforts will help to produce wider customer acceptance of the new price points. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2015 and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
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SOURCE China Ceramics Co., Ltd.