The drama continues at CAST:
ChinaCast Education Corporation Secures Business License and Chops of ChinaCast (Beijing) Education Technology
Completes Formation of New Shanghai Wholly Owned Foreign Entity
Continues Lawsuit against Wuhan School Transferees
Press Release: ChinaCast Education Corporation – 2 hours 17 minutes ago
BEIJING, Aug. 24, 2012 /PRNewswire-Asia-FirstCall/ -- ChinaCast Education ("ChinaCast" or the "Company", OTC: CAST), a post-secondary education services provider in China, today announced it has secured the Business License and Chops of ChinaCast (Beijing) Education Technology ("CBET"). CBET held the stock of Wuhan Jiyang Education ("Jiyang"), holding company of Hubei Industrial University ("HIUBC"), and China Lianhe ("Lianhe"), holding company of Li Jiang College, before the shares of Jiyang and Lianhe were illegally transferred by prior management in March 2012 prior to such management's removal from their positions with the Company. Securing the Business License and Chops of CBET will assist the Company's efforts to regain legal ownership of Jiyang and Lianhe.
This development follows the Company's earlier recapture of the Business License and Chops of its Shanghai based Yupei Training and ChinaCast Technology (Shanghai) wholly owned subsidiaries in May 2012.
In addition, the Company recently completed the formation of a new Shanghai wholly owned entity that will serve as the new operating base for the Company controlled by new management.
The Company's initial lawsuit against the illegal share transfers of the entities operating the schools has been focused on Jiyang, the entity which owns and operates HIUBC in Wuhan. As previously announced, ChinaCast commenced this suit in July of 2012 and is vigorously pursuing this lawsuit.
Derek Feng, CEO, stated, "Securing the Beijing and Shanghai Chops is an important achievement for the Company. With these Chops, we are now in a position to move forward in our efforts to unwind all illegal contracts and asset transfers that have occurred. We thank the local Chinese authorities for their support in our mission, and also thank all of our loyal employees and partners for their tireless and valuable service."
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