SHENZHEN, China, July 2, 2015 /PRNewswire/ -- China Information Technology, Inc. (the "Company" or "CNIT") (Nasdaq GS: CNIT), a leading provider of integrated cloud-based platform, exchange, and big data solutions in China, today updates investors on its progress of selling its manufacturing facility in Shenzhen.
As previously announced in November 2014, the Company signed a Letter of Intent (LOI) with an unrelated party ("the Buyer") to sell the Company's manufacturing facility including the land use rights, which is located in the Fuyong Industrial Park for RMB 375.0 million (approximately US$60.48 million). By the end of February 2015, the Company has collected RMB 100.0 million (approximately US$16.13 million) of non-refundable down payment. By the end of April 2015, the Company has transferred all risks and responsibilities of managing and maintaining the property to the Buyer.
On June 29, 2015, the Company collected an additional RMB 15 million (approximately US$2.42 million) of payment from the Buyer and used such proceeds to pay back some of its maturing bank loans. On June 30, 2015, the Company entered into a land transfer contract with the Buyer under which the Buyer agreed to pay the remaining purchase price of RMB 260 million (approximately US$41.94 million) to CNIT before the end of July 2015.
As previously announced, the Company plans to use the proceeds from this transaction for bank loan repayment, working capital, and share repurchase programs.
Mr. Jiang Huai Lin, Chairman and CEO of CNIT, commented, "With the cash infusion from this transaction, we believe we will be able to further accelerate our business execution, reduce our interest expenses, and generate more shareholder value."
About China Information Technology, Inc.
China Information Technology, Inc. (Nasdaq GS: CNIT) is on a mission to make advertising accessible and affordable for businesses of all sizes. CNIT is a leading Internet service company that provides cloud-based platform, exchange, and big data solutions enabling innovation and smart living in the education, health care, new media, finance and transportation sectors. Through continuous innovation, CNIT is leveraging its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community. To learn more, please visit http://www.chinacnit.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Technology, Inc., and its subsidiaries and other consolidated entities. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminologies such as "believes", "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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 (http://www.sec.gov). All forward-looking statements attributable to the Company and its subsidiaries and other consolidated entities or persons acting on their 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.
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SOURCE China Information Technology, Inc.