SHANGHAI, China, Dec. 19, 2012 (GLOBE NEWSWIRE) -- Mecox Lane Limited ("Mecox Lane" or the "Company") (Nasdaq:MCOX), which operates one of China's leading online platforms for apparel and accessories, today announced that the proposal of a transaction with Giosis Pte. Ltd. ("Giosis") to form a joint venture, Giosis Mecoxlane Ltd. ("Giosis Mecoxlane"), to operate a dynamic online marketplace in China on the M18.com domain was approved at the Company's extraordinary general meeting of shareholders held in Hong Kong on December 19, 2012.
Mecox Lane's shareholders adopted the following ordinary resolutions proposed by the Company:
Mecox Lane and Giosis expect to complete the transaction as soon as practicable, subject to the satisfaction or waiver of the conditions to closing set forth in the transaction documents. Upon the closing of the transaction, Giosis would initially hold 60% and Mecox Lane would initially hold 40% of the outstanding equity interests of Giosis Mecoxlane, assuming the conversion of the Series A Preferred Shares of Giosis Mecoxlane. Mr. Young Bae Ku, Giosis founder and chief executive officer, will lead the joint venture; Mr. Ku and Mr. Alfred Gu, Mecox Lane's director and chief executive officer, will serve as co-chairmen. Mecox Lane expects to sell its branded merchandise, including apparel, on the re-launched Giosis Mecoxlane online marketplace, as well as on other third-party e-commerce websites in China. Mecox Lane will continue to market and sell merchandise through its call center and physical stores. The Company is in separate discussions with Giosis Mecoxlane to utilize Mecox Lane's warehouses, distribution centers and delivery network. Mecox Lane also plans to form a new company to serve the logistics and order-fulfillment needs of its customers and third parties. Mr. Gu said, "We believe this joint venture can establish itself in China's exciting and rapidly growing marketplace-style e-commerce sector by leveraging the China market expertise of Mecox Lane, the brand recognition of M18.com, and the technical and operational know-how of Giosis.
1. That any and all transactions contemplated in the Subscription and Contribution Agreement dated as of November 20, 2012 by and among the Company, Giosis Pte. Ltd., Giosis Cayman Ltd. and other parties therein be approved and ratified;2. Authorization of each of the Directors to take any and every action that might be necessary to effect the foregoing resolution as such Director, in his or her absolute discretion, thinks fit.