HONG KONG, Aug. 7, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT) today announced that its wholly-owned subsidiary, EC Power (Global), has signed an agreement with ECoin Global Limited ("ECoin") for the purchase of ECoin redemption codes with an aggregate value of $50 million for total consideration of $20 million. The Company plans to resell the redemption codes in the form of ECrent gift cards at global locals through reseller channels, such as convenience stores. The Company's subsidiary has entered into agreement with InComm, a global pre-payment network and solution provider and will start selling the redemption codes with face values of HK$100, HK$300 and HK$500 at major convenience store networks in Hong Kong and Macau beginning in August 2017. Other international locations will follow.
Pursuant to the agreement, in exchange for redemption codes with an aggregate value of $50 million, the Company will pay ECoin total consideration of $20 million in four annual installments in an amount equal to 50% of the net sale proceeds of the redemption codes sold during each calendar year. The value of any unsold redemption codes at the expiration of the agreement will be paid to ECoin using shares of the Company's stock and not more than 19% of issued and outstanding ordinary shares of the Company.
"ECoin is now being fully utilized by ECrent, the world's largest online sharing platform, offering a safe and convenient prepaid payment option for consumers who want to participate in the worldwide sharing economy," said Parkson Yip, COO of Cleantech Solutions. "We are excited to partner with InComm to begin offering ECrent gift cards in major convenience stores in Hong Kong and Macau and plan to utilize ECoin in the other regions, as well as other sharing businesses and platforms we are currently developing, including our global sharing bike network."
About Cleantech Solutions International
Cleantech Solutions, through its affiliated companies, designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry. The Company's latest business initiatives are focused on targeting the technology and sharing economy markets in China.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary and affiliated companies and certain potential transactions that they may enter into. These forward looking statements are often identified by the use of forward looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website, including factors described in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K for the year ended December 31, 2016 and in our Form 10-Q for the quarter ended March 31, 2017. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
SOURCE Cleantech Solutions International, Inc.