Captial Alliance's SEG to merge with Comet Technologies
Capital Alliance Group Inc CPT
Shares issued 6,158,674 Sep 27 close $1.19
Wed 27 Sept 2000 News Release
Mr. Toby Chu reports
SE Global Equities Company Limited (SEG, a subsidiary of Capital Alliance
Group Inc.) and Comet Technologies, Inc., have signed a letter of intent
outlining a proposed merger between the two companies. Comet is a fully
reporting company, which is listed on the NASD OTC Bulletin Board.
SEG is a premier financial Internet portal, which enables investors to
trade stocks on-line, 24 hours a day, at discounted rates on stock
exchanges around the globe. SEG is building a network of over 100 reputable
brokerage firms, which will provide investors with direct access to over 50
of the world's established and emerging stock exchanges.
SEG has received strong interest from the international investment
community for the creation of a public market for its shares. Gaining a
U.S. listing through the merger with Comet, anticipated to take place
during the last quarter of 2000, will significantly enhance SEG's efforts
to broaden its international investor base and accelerate its plans for a
further listing on other senior U.S. and Asian exchanges. To date SEG has
received paid in capital of over $5-million (U.S.) and is currently in the
process of completing additional private placements. SEG will vend all of
its assets into the new merged company.
Following this U.S. listing, the merged company intends to obtain a dual
listing in Hong Kong during the first quarter of 2001, followed by a
further listing in Europe. Prior to its commencement of trading in Asia,
the new company will seek to raise additional capital for its operations
through SEG's sponsors -- Tai Fook and ICEA Capital Limited. Tai Fook is
one of the top securities brokerage firms in Hong Kong. ICEA Capital
Limited is a subsidiary of Industrial Commercial Bank of China, the largest
bank in China with 36,000 branches. In 1998, ICEA was ranked as the third
largest bank in the world. This new U.S. listing will be an important first
step in a co-ordinated effort to create liquidity in the North American
equities market, followed by Asian and European markets.
Prior to the merger, Comet will recapitalize so that following the merger
the total issued and outstanding shares of the new company will be
approximately 11.9 million shares. At that time Capital Alliance Group will
hold approximately 9.5 million of these shares. SEG will also appoint eight
directors to the board replacing all of Comet's existing board.
Mr. Toby Chu, SEG's president and chief executive officer, states: "We are
excited about what this merger does for us in accelerating our plans for
creating a public market in North America, Asia and Europe for SEG.
Immediately following this merger, we will commence the process for
advancing to a senior U.S. exchange. Given the feedback we have received
from our initial institutional presentations, we believe that by taking SEG
public now it will allow us to capitalize on the opportunities before us
and to accelerate the process of enhancing shareholder value."
This merger is subject to due diligence review by both parties, the
negotiation and execution of definitive agreements, and approval of SEG's
and Comet's boards of directors and shareholders, if necessary, as well as
the applicable Canadian and U.S. regulatory agencies.
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