XI'AN, China, July 18, 2016 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today is issuing this news release in response to unusual market activity in its common stock. The Company's common stock experienced much higher than usual trading volume and significant stock price gains on both July 14th, 2016, and July 15th, 2016. The NASDAQ Stock Market ("Nasdaq") placed a trading halt on the Company's common stock effective July 15th, 2016 at 4:00 pm Eastern Time, pending its request for additional information from the Company.
As disclosed by the Company in this news release, on or about July 15, 2016, SkyPeople discovered an online news item appearing on the Chinese website EGD1319.com written in Chinese that was attributed to Future World Group. The news item stated that Future World Group had successfully gained a listing on Nasdaq by acquiring SkyPeople and that it had become the controlling shareholder of SkyPeople. This online news item is inaccurate.
On July 10, 2016, Future World Investment Holding Limited, a British Virgin Islands company, and its sole shareholder, entered into a share purchase agreement with Mr. Yongke Xue, the largest shareholder, Chairman and Chief Executive Officer of SkyPeople, and certain companies controlled by Mr. Xue through which Mr. Xue holds shares of SkyPeople's common stock. Pursuant to the share purchase agreement, Mr. Xue and his controlled entities agreed to sell substantially all of the SkyPeople shares owned by them to Future World Investment Holding Limited, but only upon the occurrence and completion of identified conditions to such a sale. These conditions include, but are not limited to, the shares subject to the sale being released from a pledge securing certain obligations to third parties, Mr. Xue obtaining funding for and reaching agreement with the Company for the purchase of certain of the Company's operating entities, and the Company's Board and shareholders approving the sale of these operating entities to Mr. Xue. Mr. Xue will file a 13D with the SEC by the required time period to include the terms of the stock purchase agreement.
The closing conditions of the share purchase agreement have not been met and may never be met. Therefore, ownership of Mr. Xue's common shares has not been transferred to Future World Investment Holding Limited pursuant to the share purchase agreement or otherwise, and Mr. Xue remains the controlling stockholder of SkyPeople.
The Company cautions its shareholders and others that there is no certainty that the contingent conditions of the share purchase agreement will be met and the transaction between Mr. Xue and Future World Investment Holding Limited will be closed. In addition, SkyPeople does not undertake any obligation to provide any updates with respect to this or any other transaction except as required under applicable law and listing rules.
The Company has requested that the Chinese website EGD1319.com correct the inaccurate statements attributed to them. Further, the Company reserves the right to take legal action for damages or other relief against any entities and/or individuals who are responsible for disseminating inaccurate and misleading information about the Company.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized under the laws of Hong Kong Special Administrative Region of the People's Republic of China and a wholly owned subsidiary of Pacific, holds 73.42% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)") and 100% ownership interest in SkyPeople Foods (China) Co., Ltd. ("SkyPeople Foods China"). SkyPeople (China) and ("SkyPeople Foods China"), together with their operating subsidiaries in China, are engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. The Company's fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople," which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.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, or the Exchange Act. 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. 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 10-K for the year ended December 31, 2014 and otherwise in our SEC reports and filings, including the final prospectus for our offering. 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 SkyPeople Fruit Juice, Inc.