At the end of 2009, China Media Express Holdings Inc. (“Media Express”) was listed in the U.S. through Reverse Take-Over (RTO). In January 2010, Starr Cayman Investment Co. (“Starr Co.”) executed a Share Purchase Agreement and an Investor Rights Agreement with Media Express, to purchase 1,000,000 shares of convertible preferred stock at the price of $ 30,000,000 and 1,545,455 warrants at the price of $ 9,999,093.85. After the completion of the transaction, Starr Co. believed Cheng Zheng, as Media Express's founders, and other parties embezzled and misappropriated investment funds, as well as violated the aforesaid agreements in other ways. Starr Co. accordingly instituted arbitration in Hong Kong International Arbitration Center.
