EFuture Announces Share Purchase Agreement
BEIJING, Sept. 27, 2010 (GLOBE NEWSWIRE) -- eFuture Information Technology Inc. (Nasdaq:EFUT) (the "Company", or "eFuture"), a leading provider of software and services in China's rapidly growing retail and consumer goods industries, today announced that it has entered into a share purchase agreement to sell 337,685 ordinary shares to 13 shareholders for US$1,813,368 in cash. The agreement was effective as of September 23, 2010.
The price of the shares is equal to US$5.37 per share, the average closing price of eFuture's ordinary shares for the 20 consecutive trading days ending on, and including, September 23, 2010. The closing price for eFuture's ordinary shares on September 23, 2010 was US$5.00 per share. The transaction was approved by a committee consisting solely of eFuture's independent directors.
The largest purchaser in the sale is eFuture Inc., a Cayman Islands holding company, an entity whose members include members of eFuture's management team. eFuture's Chairman, Chief Executive Officer and Acting Chief Financial Officer, Adam Yan, founded and exercises voting control over eFuture Inc. eFuture Inc. has purchased 152,604 shares. The remaining 185,081 shares were sold to 12 individuals who include a board member (other than an independent director), management and key employees of eFuture. The net proceeds from the sale of ordinary shares will be used for general corporate purposes. The shares will be restricted shares with 180-day lock-up periods; the company has no present intention to register the resale of such shares.Adam Yan said, "This share purchase agreement reflects our continued confidence in eFuture's long-term prospects as we continue to capitalize on the strong growth in China's retail and consumer goods markets. The sale will provide additional capital to pursue these growth opportunities, and enables the participants to demonstrate their commitment to, and belief in, our company's goals for the future."
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