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CBK Digest, July 2, 2015

GOING PRIVATE NEWS

KongZhong Receives “Going Private” Offer
Beijing-based KongZhong Corp. (Nasdaq: KZ) received a management-backed “Going Private” proposal, dated June 29, 2015. The proposal was submitted by Mr. Leilei Wang, chairman and CEO of the company, and IDG-Accel China Growth Fund II L.P. The acquisition is priced at $8.56 per ADS. The transaction is intended to be financed with a combination of debt and/or equity capital. KongZhong Corp. (Nasdaq: KZ), listed on Nasdaq in 2004, is a leading online game developer and operator in China.

Taomee Retains Advisors
The Special Committee of Shanghai-based Taomee Holdings Ltd. (NYSE: TAOM) has retained Duff & Phelps Securities LLC as its financial advisor and Ropes & Gray as its international legal counsel to assist in considering its “going private” proposal.

CNIT Forms Special Committee
The board of Shenzhen-based China Information Technology, Inc. (Nasdaq GS: CNIT) has formed a Special Committee to consider its “going private” proposal. The committee consists of three independent directors of the company, Mr. Yusen Huang, Mr. Remington Hu and Dr. Yong Jiang with Mr. Huang acting as the chair of the Special Committee.

Perfect World to Hold Shareholder Meeting to Vote on “Going Private” Offer
Perfect World Co. Ltd. (Nasdaq: PWRD) plans to host an extraordinary general meeting of shareholders on July 28, 2015, at 10:00 a.m. (Hong Kong time) to discuss the “going private” merger proposal and vote on its approval.

DEALS

Solar Power Sells Notes
Shanghai-based Solar Power Inc. (OTCBB: SOPW) closed the issuance and sale of a convertible promissory note to a non-U.S. investor in connection with the private placement of up to $40 million previously announced on June 15, 2015. Pursuant to the relevant convertible promissory note purchase agreement, the Purchaser purchased a convertible promissory note in the principal amount of US$20 million (from SPI on private placement basis. The Convertible Note will mature on the first anniversary of its issuance date and will be convertible, at the Purchaser’s option, to SPI common stock at a price of $2.70 per share, subject to the terms and conditions of the Convertible Note Agreement.

Sutor Technology Executes Reverse Stock Split & Changes Ticker Symbol
Changshu-based Sutor Technology Group Ltd. (Nasdaq: formerly SUTR, now TOR) filed for a 1-5 reverse stock split. The split was effective at the market opening on June 26, 2015. At the same time, the company’s Common Stock started trading under the new symbol “TOR” and under a new CUSIP number 869362202. 500.com Closes Private Placement Shenzhen-based 500.com Ltd. (NYSE: WBAI) has closed its private placement with Tsinghua Unigroup International Co., Ltd. The company issued 63,500,500 Class A ordinary shares at a price of US$1.95 per share (corresponding to US$19.5 per ADS), for gross proceeds of approximately US$123.8 million. The Class A ordinary shares issued are subject to a six-month lock-up period.

GigaMedia Enters Share Purchase
Taipei-based GigaMedia Ltd. (Nasdaq: GIGM) has entered into a share purchase agreement to acquire 70 percent equity interest in Strawberry Cosmetics Holding Ltd. The total consideration payable by the company for the acquisition is approximately US$93.1 million.

Tiger Funds Buys eHi Shares
Shareholders of Shanghai-based eHi Car Services Ltd. (NYSE: EHIC) have voted to approve the issuance of approximately 11 million Class A common shares of Tiger Global Mautitius, SRS Partners I Mauritius Ltd. and SRS Partners II Mauritius Ltd. JinkoSolar Signs Credit Agreement with Wells Fargo Shanghai-based JinkoSolar Holding Co., Ltd. (NYSE: JKS) signed a new credit agreement with Wells Fargo Bank, upping its U.S . credit limit from $20 million to $40 million.

J&R Acquires Stake in CNinsure
Shaanxi-based J&R Firefighting Inc. (SZ: 300116), known as J&R, has acquired a stake in CNinsure Inc. (Nasdaq: CISG). J&R will purchase 63,320,000 ordinary shares of CNinsure, the equivalent of 3,166,000 of the company’s ADSs, for a total purchase price of approximately US$37.4 million in cash. The shares will be bought by Kingsford Resources Ltd. , a company owned by members of CNinsure’s management, to acquire a stake in CNinsure.

COMPLIANCE

Acorn Regains Compliance Shanghai-based Acorn International Inc. (NYSE: ATV) has regained compliance with its minimum bid price.

IN BRIEF…

–Pingdingshan-based SinoCoking Coal and Coke Chemical Industries Inc. (Nasdaq: SCOK) has changed its name to “Hongli Clean Energy Technologies Corp.”