GUANGZHOU, China, Dec. 17, 2014 (GLOBE NEWSWIRE) -- CNinsure Inc. ("CNinsure" or the "Company") (Nasdaq:CISG), a leading independent insurance intermediary company in China, today announced that it has completed its sale of ordinary shares to employees as previously announced on November 27, 2014 and December 12, 2014.
As a result of the transactions, the Company issued and sold an aggregate of 150,000,000 ordinary shares, equivalent to 7,500,000 ADSs of the Company, to its employees for an aggregate purchase price of approximately $41.5 million. The shares purchased by the employees are subject to a 6-month lock-up.
The Company has also obtained approval from its board of directors to grant loans to employees for the purchase of the new shares of the Company. The loans bear interest at a rate of 3% per annum and are repayable upon the sale of the shares of the Company, termination of employment or within two years, whichever comes first.
About CNinsure Inc.
CNinsure is a leading independent intermediary company operating in China. CNinsure's distribution network reaches many of China's most economically developed regions and affluent cities. The Company distributes a wide variety of property and casualty and life insurance products underwritten by domestic and foreign insurance companies operating in China, and provides insurance claims adjusting as well as other insurance-related services.
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward- looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about CNinsure and the industry. Potential risks and uncertainties include, but are not limited to, those relating to CNinsure's limited operating history, especially its limited experience in selling life insurance products, its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, and macroeconomic conditions in China and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and CNinsure undertakes no obligation to update any forward-looking statements. Although CNinsure believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by CNinsure is included in CNinsure's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.