VisionChina acquired DMG from Gobi and Oak in January 2010, pursuant to a Merger Agreement that required VisionChina to make an initial payment of $100 million in cash and stock and two deferred payments of $30 million each over the next two years. DMG operated China's leading digital media network inside subway systems comprising over 34,000 digital screens in 32 subways, high-speed train lines and bus shelters.
VisionChina failed to make the two deferred payments, totaling $60 million.
Oak and Gobi are pursuing additional damages in connection with VisionChina's breach of its agreements to complete the purchase of DMG. Oak and Gobi believe that the total damages because of VisionChina's conduct exceed $114 million.
The case, Shareholder Representative Services, LLC, et al. v. VisionChina Media Inc., et al, was filed in the Supreme Court of the State of New York, New York County, index # 650526/2011. There is also a related case, VisionChina Media Inc., et al., v. Shareholder Representative Services, LLC, et al., index # 652390/2010.About Oak Investment PartnersOak Investment Partners is a multi-stage venture capital firm. The primary investment focus is on high growth opportunities in Broadband Internet and Wireless Communications, Information Technology and Software Outsourced Services, Consumer Internet/New Media, Financial Services Technology, Healthcare Information and Services, Clean Energy, and Retail. Over a 33-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 495 companies at key points in their lifecycle. Oak has been involved in the formation of companies, funded spinouts of operating divisions and technology assets, and provided growth equity to mid- and late-stage private businesses and to public companies through PIPE investments. About Gobi Partners Founded in 2002, Gobi Partners is a venture capital firm with its headquarters and incubation centre in Shanghai and additional offices in Beijing, Guangzhou, Hong Kong, and Tianjin, as well as an overseas office in Singapore. A leading investor in early stage digital media and technology companies in Greater China, Gobi manages five funds with over $300 million under management. Since its establishment, Gobi has funded dozens of early to traction stage companies and continues to invest actively in the region. SOURCE Oak Investment Partners and Gobi Partners
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