Thanks for the heads-up, I have also just heard that YWH-V (the old WSMI) may be going back into play for a possible triple. Also news today on Tengtu (TNTU-L), $2 million debt financing from Bill Ballard:
Tengtu International Receives $2 Million Loan From
Orion Capital
Microsoft China Partner Deploys Funds Immediately to Clear Huge Order Backlog from Thousands of K-12 Schools under PRC Education Ministry Mandate
TORONTO--(BUSINESS WIRE)--March 9, 2001-- Tengtu International Corporation (OTC BB:TNTU - news) has
received a $2 million two-part loan from Orion Capital, Inc., a Canadian private investment firm, Tengtu Chairman and CEO Pak K. Cheung announced this morning. Net proceeds have been deployed immediately to Beijing to hasten to market the Tengtu/Microsoft Total Solution software package.
"This timely financing not only primes the pump for our popular school software in China but is symbolically significant as the first substantial investment recognition that the company has received this year," Cheung stated. "Thousands of K-12 schools in the PRC, under strict orders from the Ministry of Education to purchase only our interactive teaching tool, have been awaiting our Tengtu/Microsoft package. With this Orion loan, we are able to jump-start the process of clearing a backlog of thousands of schools at an average of $1,800 per school."
Orion Capital President William Ballard, who recently returned from an extensive due diligence trip to Beijing in connection with the Tengtu loan, corroborated the good reputation and strong demand for Tengtu product in China schools. "I have met personally with top officials of the Ministry of Education itself and leading schools under its supervision and am convinced that Tengtu's government support at all levels insures a bright future for its unique software in the huge China market," he stated.
The Orion loan is in two tranches of $1 million each. Under the terms of the first tranche, a 10% non-convertible note due in 12 months, Orion has received a warrant to purchase 670,000 common shares of Tengtu at thirty cents each. There were approximately 24.7 million common shares outstanding on December 31, 2000.
Under the terms of the second tranche, Orion has been issued a $1 million 10% note due in 15 months and convertible at thirty cents per share. To the extent that Orion chooses not to convert, it may exercise a warrant to purchase up to 670,000 shares of Tengtu International also at thirty cents per share.
Any shares to be issued by Tengtu International in connection with this loan carry certain registration rights but are otherwise restricted.
Note: All dollar amounts are in US dollars.
About Tengtu International Corp.
Tengtu International Corp. is a developer and distributor of multimedia educational and entertainment software and related services, operating through a joint venture and subsidiaries in Canada, Hong Kong and the People's Republic of China.
The company's primary operating unit, Tengtu United Electronics Development Co. Ltd. (``Tengtu United''), is a 57% owned joint venture with Beijing Tengtu Culture & Education Development Co. Ltd. (``Tengtu China''), the Chinese state enterprise mandated to develop a comprehensive information technology solution for the national K-12 school system and to serve as the country's gateway for electronic publishing. Tengtu China is owned by three of China's largest computer companies, Legend Computer Group, Great Wall Computer Group and Taiji Computer Corporation, and Chinese technology firm Beijing Oriental Lianfa Company Ltd. Its strategic partners include the China unit of Microsoft Corporation (Nasdaq: MSFT - news); People's Education Press, the sole source of materials authorized for use in Chinese schools, and Netopia, Inc.
Tengtu International's other units include wholly owned e-business portal e-bizTengtu.com, Inc.; wholly owned animation and television production studio TIC Beijing Digital Pictures Co., Ltd.; and 61.3% owned software marketer Edsoft Platforms (Hong Kong) Ltd.
IMO this is a huge step, the company really needed a major backer to help them handle their massive schools project - now they have one. GP6 |
