HARTCOURT COMPANIES INC (HRCT.OB)
form 8-K
Item 2. Acquisition or Disposition of Assets
On May 16, 2001, The Hartcourt Companies, Inc., a
Utah Corporation (Registrant), completed the purchase of 51%
of all of the issued and outstanding shares of common stock of
Elephant Talk Limited ("ET"), for a total consideration of
$3,825,000. The purchase price was paid at the Closing Date of
May 16, 2001 as follows: $1,500,000 of the purchase price
consisted of the value of 1,000,000 restricted common shares
of the Registrant, valued at $250,000 at the closing, and a
promissory note in the amount of $1,250,000, which shall be
due and payable on February 16, 2002; and $2,325,000 of the
purchase price was paid by issuance of 3,756,058 restricted
common shares of the Registrant to nine shareholders of ET in
proportion to their share holdings. The share price was
calculated by dividing $2,325,000 by the average daily share
closing value of the Registrant's common stock for the ten
business days immediately preceding the date of Closing.
Elephant Talk Limited, based in Hong Kong, is one of
the leading international long-distance service providers to
Hong Kong and portions of China. Established in 1995, it holds
a number of licenses including US FCC 214, HK ETS and ISP
PNETS allowing it to provide voice, data transmission like
IDD, pre-paid calling card and ISP services. Its customers
include major telecom carriers based in the U.S. and Hong
Kong.
The Registrant does not intend any changes in
management and will operate Elephant Talk as a subsidiary of
the Company. |
