Exceed Company Ltd., owner of China's Xidelong athletic brand, said it is negotiating with its Chairman and CE0 Shuipan Lin to again extend the deadline for him to close on his proposed acquisition of the company following news that he had secured new financing Sept. 5.
The merger agreement Exceed signed Dec. 2, 2013 with Lin's Pan Long Limited and Pan Long Investment Holdings Ltd, allowed the parties to terminate the merger agreement without paying a kill fee if no deal was consummated by Sept. 2. But the company opted not to terminate the agreement after learning Lin had secured a $15 million loan Sept. 5 to replace equity investors that pulled out of the deal, forcing Lin to refund them $5 million they had deposited.
According to Exceed announcement Wednesday, Lin signed a loan agreement Sept. 5 with Ms. Xiuyu Chen to provide $15 million at 9.5 percent annual interest to be repaid in a lump sum cash payment two months after the proposed deal closes.
Since it began operations in 2002, Exceed has focused on designing, developing and wholesaling footwear, apparel and accessories under its own Xidelong brand. It makes running, leisure, basketball, skateboarding and canvas footwear; sports tops, pants, jackets, track suits and coats; and bags, socks, hats, caps and other accessories. Exceed currently trades on NASDAQ under the symbol "EDS".
