SINOBULL/HARTCOURT FAQ
Q. What is the relationship between Hartcourt and Sinobull.com ?
A. Sinobull.com is an independent company. Hartcourt will own approximately 36 percent of Sinobull.com after the IPO .
Q. What companies are included in Sinobull.com?
A. Sinobull.com consists of UAC Online Stock Trading Inc. of China and Financial Telecom Ltd. (FTL) of Hong Kong. In addition, we are planning to acquire 3 more Internet companies to complete all aspects of the financial portal and service business. (One of which is StreamingAsia.com). Two major American and Chinese strategic partners are also expected to join the IPO.
Q. What is the process required of an IPO ? Where it will be listed ? What is the value ?
A. Ernst & Young was hired to do a business plan for Sinobull.com. It should be completed by January 2000. If it is met with all expectations, a major investment banker will agree to underwrite it. A registration statement will then be drafted and submitted to the SEC for approval. Afterwards, the banker will undertake to market it before the official IPO, which is the selling of the shares to the public. All of this process will require at least 6 months from the date of the underwriting agreement. The listing of the shares will be on NASDAQ. Estimated value of Sinobull.com upon IPO is about $500 Million. The company may decide to sell 20 percent of the company to the public, which should bring in $100 Million, by selling 5 Million shares at $20. per share.
Q. How it will affect the value or the share price of Hartcourt ?
A. Since Hartcourt owns 36 percent of Sinobull.com, Hartcourt will have on its book an asset valued at $180 Million. It should automatically increase Hartcourt's market value, thus, Hartcourt's share price. In addition, if the IPO is as successful as other IPO's shares, the appreciation will be much greater.
Q. How it will benefit me, the shareholder of HRCT ?
A. First of all, your HRCT share price should increase in value as explained above. As for the IPO shares, we have asked the underwriter to reserve from 500,000. to 1 Million shares for HRCT shareholders. According to the number of shares you owns in Hartcourt at a cut-off date (to be determined later by the Board), you will be allowed to purchase a proportional number of shares of Sinobull.com at the issuing price, $20. per share.
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