Sino-Global Shipping America, Ltd., a Virginia company engaged in shipping, chartering, logistics and related services, has terminated an asset purchase agreement that was entered into on April 10, 2015 with Hong Kong-based Rong Yao International Shipping Limited.

Pursuant to the agreement, Sino Global to acquire the Rong Zhou, an 8,818 gross tonnage oil and chemical transportation tanker, from Rong Yao for USD 10.5 million, including 1.2 million shares of the company’s common stock at a value of USD 1.85 per share.

Lei Cao, Chief Executive Officer of Sino-Global, said: “We felt our time and resources were best spent focusing on the upside potential of our shipping and logistics services. We believe that with greater scale we could integrate an asset management component to our operations but currently feel that there are substantial opportunities to leverage our asset-light platform to grow.”

Under the terms of the termination agreement, the Rong Yao will return the 1.2 million shares of common stock to Sino Global. In addition to the termination of the asset purchase agreement, all ship management and time chartering agreements signed between the two parties will also terminate. Upon payment in full of any balances, Sino-Global will release the mortgage on the 2010-built Rong Zhou.

(From: World Maritime News)