HRCT PR JUST RELEASED
Hartcourt CEO Discussed the IPO of Sinobull.com And The
$25 Million Equity Financing
LOS ANGELES, Nov. 22 /PRNewswire/ -- In an interview with the German financial magazine, wallstreet-online.de, Dr. Alan Phan,
Chairman & CEO of Hartcourt (OTC Bulletin Board: HRCT - news) explained details of the coming IPO of Sinobull.com and the
structure of the $25 Million equity financing agreement with Swartz. Here is the excerpt of part of the interview:
``Q. Can you give us more details on the formation of Sinobull.com and how it will affect Hartcourt shareholders?'
``A. Sinobull.com is a separate entity, in which Hartcourt contributed the shares it owns in UAC and FTL as equity. Other owners of
Sinobull.com include our present partners of UAC and FTL, plus 3 more strategic partners (well-known American and Chinese
companies) which shall be disclosed as soon as agreements are signed. The percentage of ownership of Sinobull.com will be 45% for
Hartcourt, 21% for UAC partners, 18% for FTL partners, and 16% for 3 new partners. Based on projected revenue, net profit, market
position and comparable market capitalization of other Chinese Internet companies, our investment banker estimated that Sinobull
should command a $500 Million price tag on its IPO. We plan to sell 20% of Sinobull to the public by issuing 5 Million shares at $20
per share. The IPO would reduce Hartcourt's ownership of Sinobull to 36 percent, equaling to $180 Million (or $7 book value per
share) in assets. It could go much higher if the public embraces the IPO as seen in other cases. Depending upon the impact on HRCT
price, the Board could then decide to keep its Sinobull shares in Hartcourt's portfolio; or to pay out all or part of it as dividends to
HRCT shareholders. As for the IPO, the banker would study market conditions before deciding to list Sinobull in NASDAQ or GEM
(Hong Kong) or both. We are also working with the banker to reserve a quantity of IPO shares, from 500,000. to 1 Million, for
existing HRCT shareholders.'
``Q. How is the $25 Million equity financing agreement with Swartz structured?'
``A. First of all, Hartcourt will file a SB-2 registration of the shares we plan to issue. Once it is approved by the SEC, Swartz has the
obligation to purchase these shares at the market price minus 10 percent discount during the next 24 months. The maximum amount
of funding will be 10 percent of the dollar trading volume of HRCT each month. Hartcourt does not have to sell these shares, if we do
not need the money or if the market price is not attractive. Therefore, we are in complete control of the share dilution and the timing
of the funding. Swartz has good track records of similar funding with many larger Internet firms.'
Certain statements in this news release may constitute ``forward looking' statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors, which may cause
the actual results, performance or achievement expressed or implied by such forward-looking statements to differ materially from the
forward-looking statements.
SOURCE: The Hartcourt Companies, Inc.
DISCLAIMER
HRCT has retained DDInvestor.com for a 6 month period to assist it in becoming more widely known to the investment community. For its efforts, DDInvestor.com will receive $1,000 in cash and 3,000 shares of HRCT stock each month.
We also urge you to read our full disclaimer as provided on our web site at:
ddinvestor.com |
