Press Release

JPMFC Acted as Independent Financial Advisor on Lianluo’s Acquision of Newegg Inc.

Hangzhou Liaison Interactive Information Technology Co., Ltd. (“Lianluo”) announced in April, 2017 that Lianluo had completed its acquisition of 55.70% stake in Newegg Inc. (“Newegg”), with total consideration of CNY1.77 billion. JPMFC acted as the Independent Financial Advisor of Lianluo in this transaction.

Lianluo invests CNY1.77 billion (equivalent to approximately US$264.17 million) in cash to take up a 55.7% stake in Newegg, through acquiring 13.27 million shares from Fred Chang and the other 17 shareholders, and subscribing 24.87 million newly issued AA series preferred shares of Newegg. According to Share Subscription Agreement, Earn-Out Payment target of EBITDA for the year of 2016, 2017 and 2018 is respectively US$8.5 million, US$22.6 million and US$39.00 million. The transaction does not involve earning commitment, and correspondingly no profit compensation plan.