Lianluo Smart Limited Announces Sale of Wholly Owned Subsidiary Beijing Dehaier Medical Technology Co., Ltd.
BEIJING, Nov. 17, 2017 /PRNewswire/ -- Lianluo Smart Limited ("Lianluo Smart" or the "Company") (Nasdaq: LLIT), a smart service and products provider in China, today announced that it has entered into a non-binding term sheet with an unrelated third party for the sale of the Company's wholly owned subsidiary, Beijing Dehaier Medical Technology Co., Ltd. ("BDL"), after approval by the Company's Board of Directors.
BDL primarily focuses on manufacturing traditional medical devices. The Company expects the sale price for BDL will be approximately RMB10 million. The transaction signifies Lianluo Smart's transformation to an asset-light smart medical device business from the asset-heavy traditional medical service business. Prior to selling BDL, the Company's sleep diagnosis and smart medical service related assets will be transferred to another of the Company's wholly-owned subsidiaries, Lianluo Connection Medical Wearable Device Technology (Beijing) Co., Ltd. ("LCL"). As part of the Company's strategy moving forward, LCL will concentrate on business development of the smart medical device market and acquisition of complementary smart medical devices and ecosystem platforms.
Management Commentary
Mr. Ping Chen, CEO of Lianluo Smart stated, "We are pleased to announce this transaction as a significant step forward to complete our business transformation, as this sale also allows Lianluo Smart to be more focused on development and properly allocate our resources on its strength--smart service and products. In addition, the transaction will significantly reduce the amortization of fixed assets and intangible assets, as well as the personnel and labor costs of related product lines. We remain focused on driving revenues from smart medical wearable devices and will keep our investors apprised of the progress of this transaction."
About Lianluo Smart Limited
Lianluo Smart Limited is a smart service and products provider, which develops, markets and sells medical wearable devices, intelligent smart devices and ecosystem platform in China. The medical wearable devices sector's major products are wearable sleep respiratory devices. It provides medical-grade detection and monitoring to OSA (Obstructive Sleep Apnea) syndrome patients. The smart devices sector is specialized in easy-using smart devices for sports, social contact, entertainment, remote-control and family health management. The smart ecosystem platform interconnects things and things, things and human. Lianluo Smart is endeavoring to become a leading provider of intelligent smart products both in domestic and international markets. More information may be found at www.lianluosmart.com.
CONTACT:
AT THE COMPANY:
Ms. Mary Li
Tel: +86-10-8860-9850
investor@lianluosmart.com
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Katherine Yao, Senior Associate
Tel: +86-10-6587-6435
kyao@equityny.com
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SOURCE Lianluo Smart Limited
