Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - VelaTel Global Communications, Inc. | chinatel_8k-020910.htm |
EX-99.1 - STOCK PURCHASE AGREEMENT - VelaTel Global Communications, Inc. | chinatel_8k-ex9901.htm |
EX-99.2 - STOCK PURCHASE AGREEMENT - VelaTel Global Communications, Inc. | chinatel_8k-ex9902.htm |
EXHIBIT 99.3
FOR
IMMEDIATE RELEASE:
CHINATEL
CLOSES US$640 MILLION IN EQUITY INVESTMENTS AT $3 PER SHARE
IRVINE, CA – February 9, 2010 –
ChinaTel Group, Inc. (ChinaTel) (OTCBB: CHTL), a leader in high speed
wireless broadband and telecommunications infrastructure engineering and
construction services, today announced it has signed and received the first
combined installments of two stock purchase agreements calling for a total
investment of $640 million into the company. The combined investment represents
48% of the total outstanding shares, valuing ChinaTel in excess of $1.33
billion.
The
investors have each made initial payments called for under their respective
contracts. By March 1, 2010, ChinaTel will have received $241
million, and the balance of $399 million by June 1, 2010. Proceeds
from the contracts will primarily be used to expand and deploy wireless
broadband networks worldwide in addition to repaying existing financing
notes. Full details of the transactions are available on Form 8-K
filed with SEC at www.sec.gov.
ChinaTel’s
CEO, George Alvarez, stated, “With this infusion of capital, we can pursue our
global expansion plans, and accelerate the deployment of the Chinacomm network
in the Peoples Republic of China (PRC) We expect to complete
build-out of the first twelve PRC cities by June, 2011. When
completed, the Chinacomm network will be one of the largest wireless broadband
networks in the world.”
The
investment partners are Excel Era Limited (Excel), a Hong Kong based investment
group, and Isaac Organization, Inc. (Isaac), a Canadian-based
investor. Excel is investing $480 million and acquiring approximately
159.6 million new shares of ChinaTel’s series A common stock to be issued, which
represents 36% of total shares issued and outstanding as of the closing
date. Isaac is investing $160 million and acquiring approximately
53.2 million newly issued shares, which represents 12% of the total outstanding
shares. The price per share for both transactions is
$3.0075.
ChinaTel’s
President, Colin Tay remarked: “We have worked very hard to execute transactions
beneficial to both our shareholders and our new institutional
investors. We selected these investment partners because they provide
unique alliances that will facilitate ChinaTel’s ability to penetrate additional
markets globally.’
Isaac
Organization has previously served as a strategic advisor to ChinaTel in
addition to developing and managing a portfolio of assets valued in excess of $5
billion, including significant interests in Asia. “We have been
involved with ChinaTel in an advisory capacity and are very pleased to take a
larger role with the Company. Being very familiar with the ChinaTel story, Isaac
Organization seized the opportunity to invest in the next generation of a
high-demand technology to meet the needs of rapidly emerging markets,” said Tony
Isaac, CEO of Isaac Organization. “The timing was right for this
investment, and we look forward to our increased role with and the future of
ChinaTel.”
In
conjunction with the financing, ChinaTel is appointing Tony Isaac and Charles
Wang to its board, expanding the number of company directors from four to six.
Mr. Wang is CEO of Excel, which has a strategic presence in numerous markets,
including India, Argentina, Peru and Brazil.
“Being
asked to join the board of ChinaTel is a great honor. I look forward to working
closely with the management team and brining my relevant technology management
and public company board experience to ChinaTel,” said Charles
Wang.
About
ChinaTel Group, Inc.
ChinaTel
Group, Inc. (ChinaTel), through its controlled subsidiaries, provides fixed
telephony, conventional long distance, high-speed wireless broadband and
telecommunications infrastructure engineering and construction services.
ChinaTel is presently building, operating and deploying networks in Asia and
South America: a 3.5GHz wireless broadband system in 29 cities across the
People’s Republic of China (PRC) with and for CECT-Chinacomm Communications Co.,
Ltd., a PRC company that holds a license to build the high speed wireless
broadband system; and a 2.5GHz wireless broadband system in cities across Peru
with and for Perusat, S.A., a Peruvian company that holds a license to build
high speed wireless broadband systems. ChinaTel’s vision remains clear: (i) to
acquire and operate wireless broadband networks in key markets throughout the
world; (ii) to deliver a new world of communications; and (iii) and invest in
building long-lasting relationships with customers and partners to lead the
broadband industry in customer service and responsiveness. Our strategy is to
build leading-edge IP-leveraged solutions advanced by our worldwide
infrastructure and leadership in emerging markets. www.ChinaTelGroup.com
About Excel Era Limited
Excel
provides creative financial solutions and funding for private projects,
humanitarian projects and individual clients in niche investment banking and
financial service environments. With over $200 billion under
management, our range of services includes (a) asset management, and (b) project
financing. Our specialty is providing multi-dimensional financing
solutions for our clients by viewing the total picture of the client’s goals,
assessing not only financial requirements, but the aggregate of needs in
relation to opportunities, helping each client determine what can be done to
enhance the utilization of their assets. The range of services
described above is not offered to the public, but only upon specific request by
qualified and sophisticated investors.
About
Isaac Organization
Isaac is
a leading global private investment firm with approximately $5 billion worth of
projects under management across a family of funds. Isaac invests in companies
across a broad range of geographies, including the United States, Canada, China,
Taiwan, and South Korea. Guided by a thorough approach to due
diligence execution, research and market analysis, Isaac Organization has found
one financial truth to be inviolate: growth and real wealth happens over time
and scrupulous due diligence. Isaac’s various funds invest in
commercial real estate buildings leased by several agencies of the United States
federal government, as well as by hospitals and medical clinics, and other
industries including technology, telecommunications and entertainment
companies. Isaac is also involved in urban development projects in
Asia. In recent months the company has closed transactions valued at
approximately $346 million. www.isaac.com
Safe
Harbor Statement
This
press release contains forward-looking statements that involve risks and
uncertainties. Actual results, events and performances could vary
materially from those contemplated by these forward-looking statements. These
statements involve known and unknown risks and uncertainties, which may cause
the Company's actual results, expressed or implied, to differ materially from
expected results. These risks and uncertainties include, among other things,
product demand and market competition. You should independently investigate and
fully understand all risks before making an investment decision.
Contacts:
China Tel
Group, Inc.
Investor
Relations
(Toll
Free) 1-877-260-9170
investors@chinatelgroup.com
Media: Lewis
Goldberg / 212-896-1216 / lgoldberg@kcsa.com
2