Nova Lifestyle Inc (NASDAQ:NVFY) a U.S.-based, prominent innovative designer, producer and supplier of modern life style furniture, reported that Ya Ming “Jeffrey” Wong has resigned as CEO to pursue other opportunities.
Nova Lifestyle said that the Board has appointed company’s President and Chairperson Ms. Tawny Lam as Interim CEO. Before Wong’s resignation, his primary responsibilities were to operate and manage manufacturing facilities and operations in mainland China. The management clarified that Wong’s resignation was not due to any differences with the firm or Board. It was a voluntary choice resulting from the firm’s recent deal to sell its China-based operations.
On recent leadership change, Ms. Lam said that on behalf of Nova’s Board, she would like to thank Wong for his commitment and leadership. With the approaching sale of China business, they appreciate Wong’s desire to look for other prospects and they wish him well in future undertakings. Lam also showed her gratitude to the Board for electing her Interim CEO.
Share transfer deal
In last week of September, Nova Lifestyle entered into a Share Transfer Agreement with Kuka Design Limited. Kuka is a firm incorporated in BVI to sell NOVA BVI and its affiliates, which comprises of the firm’s manufacturing businesses in mainland China. With the Chinese economy facing uncertainty, and a substantial increase seen in labor and other expenses for manufacturing facilities, the firm intends to sell NOVA BVI.
It will enable the firm to shift to a “light-asset” operation model with increased scalability and flexibility. Also, it will help in focusing businesses on designing, developing, marketing, distributing and branding furniture items in Asia, North America and around the globe. The deal is finalized for $8.5 million and it is expected to close by October 30, 2016.
Nova Lifestyle will use the funds to continue to expand its e-commerce channels, marketing and distribution efforts in North America, Europe, Asia and other new markets. It can focus its manufacturing capabilities on developing, branding, designing, distributing and marketing furniture products and enhancing profit margins. The company will continue to keep investors informed of deal progress.