BEIJING, Sept. 18, 2018 /PRNewswire/ -- Link Motion
Inc., (NYSE: LKM), a leading smart car and smart ride company,
has issued a shareholder letter from Co-Chairman of the Board Dr.
Vincent Wenyong Shi and Co-Chairman
of the Board Mr. Rui Chi.
Below is the shareholder letter:
Dear Shareholders,
As announced in our press release on September 10, 2018, our Board of Directors has
acted boldly to take the initial necessary steps to move the
Company forward. Over the weekend, we have taken additional
necessary steps and we are working on further actions to move
ahead. As Co-Chairmen of the Board of Directors, we wish to
provide you with a formal shareholder letter to discuss the future
of the Company.
We recognize that the past four years have been marked by a
series of unintended disappointments and both perceived and actual
negative outcomes for our Company. This has been extremely
disappointing, frustrating, and difficult for all of our
shareholders, employees, and partners. We are pleased that
the independent investigation has been concluded and that the
Company is now in a position to build for the future. We
invite you to review the press release summarizing the background
and findings of the report to the Board of Directors submitted by
Loeb & Loeb LLC, counsel to the Special Committee, that has
been furnished to the Securities and Exchange Commission on Form
6-K. This report is readily available on the SEC's website at
www.sec.gov and is also available on our investor relations website
at the following URL: ir.lkmotion.com.
Although the Board of Directors and the management team are
gratified by the results of the investigation, we all know that
improving the Company's corporate governance and operational
controls are crucial if the Company is to fulfill its potential and
meet the high expectations that the shareholders and the Board of
Directors share. The Company has identified a clear pathway
forward to growth and profitability. We have already begun,
and will continue, to work with the entire organization and all
relevant parties to move the Company ahead. We are committed to
being a better Company and to achieve outstanding results for all
our shareholders. We recognize that the personal dispute
between the beneficial owners of RPL Holdings Ltd., one of our
major shareholders, will likely be ongoing for some time, but we
are taking the necessary steps to ensure that these matters to do
not continue to impact the Company.
The first necessary action that has been agreed to by the Board
is that beginning today, Vincent will be primarily focused on the
following three areas: 1) Resolving the ongoing dispute
with Henry 2) working with Tongfang to ensure the successful
payment of their note obligation to the Company and 3) working at a
high level capacity with Zhongzhi on future strategic business
cooperation opportunities. Having Vincent shift his whole
focus on these priorities is in the best interest of the Company
and its shareholders.
In addition to Vincent's focused efforts on these matters, the
Board has appointed Mr. Jia Lian as
the Acting Chief Executive Officer following the resignation of Mr.
Zemin Xu. To be clear, Mr.
Lian is uniquely capable to act in this capacity during this time
for the Company as it moves ahead to protect its employees,
customers, partners and shareholders from the ongoing tactics by
Henry Lin to disrupt operations as
he continues his personal dispute with Vincent. Mr. Lian is
there to manage this process. The Company has strong
operational leadership who have been instructed to focus on their
business. When the Henry matters are closed and any potential
disruption is averted, the Board will appoint a new and permanent
CEO to lead the organization forward. We are thankful to our
past management team including Mr. Xu, Justin Chen and Roland
Wu. We wish them best in their future endeavors.
We are pleased that the Company can now move forward to take
full advantage of the significant opportunities for business
expansion and profitable growth that are before us. The Board
of Directors and the management team have already begun taking
action, and will continue to implement other constructive steps, to
ensure the enhancement of the Company's corporate governance and
operational controls. Beginning with the actions announced on
September 10 and today, we will do
our best to ensure that the Company is focused entirely on
executing its business plans and that no distractions of any kind,
including those that have been associated with disputes related to
RPL Holdings, will be permitted to hinder the Company's growth and
creation of shareholder value.
The Company has tremendous opportunities in the transportation
industry, especially in what we have labeled our "Smart Ride" and
"Smart Car" businesses. This sector is not only a big market
with exciting growth potential, it is a business opportunity that
the Company has been working on and to which it has devoted
considerable attention and resources for a couple of years now.
The team has made significant progress in reaching key
milestones necessary to commercialize our efforts and to have a
real impact on this operational sector. As we have announced,
the Company has already begun to partner with key industry and
strategic players. We have gone through and passed certain
key regulatory requirements with respect to our technology and have
already demonstrated key differentiators against the
competition.
Our "Smart Ride" and "Smart Car" businesses are the key focus of
our Company going forward and we look forward to successfully
executing our plans. We are convinced that our business model
of helping passengers move efficiently from point A to point B is a
good one, and we intend to leverage this model by making the time
the passengers spend enjoyable and productive. It is in our
ability to create the "Smart Space" that enables riders to make
their time in the car more enjoyable and productive that we see our
competitive advantage and our major business opportunity.
Our Company's technological and operational management teams
have done an outstanding job in getting us to this point. As
we move forward, we will keep these teams intact and further
empower them with the resources and support necessary to "step on
the accelerator. " The market opportunity is open for us now and we
must act quickly to take advantage of this open window.
One final point we wish to make today. We announced over
the weekend a new agreement with Zhongzhi Hi-Tech Overseas
Investment Ltd. ("Zhongzhi"), which includes a non-binding MOU to
further engage in various business cooperations. We also
announced a pledge of additional assets as additional securities
for the convertible note. We are finalizing the negotiations
around an extension of the maturity date of the note and we expect
to announce this new extension agreement shortly. This
extension and agreement is beneficial as we have sufficient capital
and cash, however, we need additional time to go through the
process of converting our RMB currency into US dollars. We
believe that extending the maturity and working together with
Zhongzhi is mutually beneficial to all parties.
In summary, it is time to begin anew to build the Company that
we can all be proud of. We are powerfully positioned to
profit from a major industrial and technological revolution, but we
must utilize our advantages and execute our business plan in a way
that drives shareholder returns and value. We are humbled by this
great opportunity, but determined and focused to enact positive
change and deliver successful outcomes for you. We believe
that the steps we are taking is putting the Company in position to
move forward. We appreciate your support and continued
patience.
With gratitude and determination,
Larry and Vincent
About Link Motion Inc.
Link Motion Inc. ("Link Motion" or the "Company", NYSE: LKM) is
a leading smart car and smart ride company. Link Motion's portfolio
of offerings includes enabling technology solutions and secure
connected carputers for the ecosystem of car businesses, consumer
ride sharing services, as well as legacy mobile security,
productivity and other related applications. For more information
on Link Motion, please visit www.lkmotion.com or the company's U.S.
investor relations site here.
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. All statements other than statements of historical fact
in this press release are forward-looking statements and involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
These forward-looking statements are based on management's current
expectations, assumptions, estimates and projections about the
Company and the industry in which the Company operates, but involve
a number of unknown risks and uncertainties. Further information
regarding these and other risks is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and actual
results may differ materially from the anticipated results. You are
urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not
to place undue reliance on such forward-looking statements, which
are qualified in their entirety by these cautionary statements.
Media & Investor Relations
MZ North America
Chris Tyson
Managing Director
949-491-8235
LKM@mzgroup.us
www.mzgroup.us
Luke Zimmerman
Senior Associate
949-259-4987
LKM@mzgroup.us
www.mzgroup.us
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SOURCE Link Motion Inc.
