BEIJING, July 8 /Xinhua-PRNewswire-FirstCall/ -- Asia Premium Television Group, Inc. (OTC Bulletin Board: ATVG), a China-based payment community and marketing company, announced today that it has entered into a strategic financing arrangement with Her Village, Limited (“Her Village”). Her Village is a multimedia women’s community in China with over 40 million e-magazine downloads and web visits, and has 10 million unique visitors per month. Her Village is also one of Asia Premium’s largest shareholders.
The financing provides ATVG with up to US$2 million in cash financing and significant marketing assets for the development of its own urban female consumer community in Mainland China.
Strategic Financing Agreement Terms
According to the terms of agreement, Her Village will pay $1,000,000 to ATVG in exchange for 1 million shares of ATVG common stock valued at US$1 per share. In addition, Her Village will be granted warrants to purchase an additional 1 million shares of ATVG common stock with an exercise price of US$1, exercisable within 18 months of the warrant issuance date.
As part of the agreement, Her Village will grant to ATVG several marketing rights and assets free of charge, including:
-- Non-exclusive usage rights to the Her Village women database
(exclusive right for mobile payment communities).
-- Non-exclusive, perpetual marketing rights in all Her Village Media
(exclusive for mobile payment communities).
-- Non-exclusive right to launch a http://www.HVMobi.com marketing
insert in Her Village publications (exclusive for mobile payment
communities).
-- Non-exclusive right to host the http://www.HVMobi.com website at Her
Village’s website.
ATVG plans to use the investment proceeds to finance the expansion of its mobile top-up operations in Jiangxi Province and for other working capital purposes.
Plans for a Joint Venture with Her Village
ATVG and Her Village have further agreed to establish a joint venture to develop targeted shopping products-tentatively branded as “HV Mobi PINK” products -- for urban female consumers in China. It is expected that the products will include stick-on labels and prepay debit cards that offer female consumers shopping discounts and rewards at select merchants. The joint venture is expected to be 60% owned by Her Village and 40% owned by ATVG, with Her Village contributing all marketing and data support and ATVG contributing all necessary technology. ATVG has not entered into any similar agreements but plans to enter similar agreements with other parties in the future, in order to develop consumer communities for other key demographics such as businessmen, youth and senior citizens.
“Mr. Xing Jing, Chairman and CEO of Asia Premium Television Group, Inc. commented, "This agreement represents a step in the development of our consumer communities business. Through the agreement, we will obtain US$1 million in cash financing and up to another US$1 million in cash financing over the next 18 months. At the same time, we have secured marketing assets and support necessary to launch Mobi shopping products for the urban female demographic. We are now focused on completing the roll out of our mobile top-up operations in Jiangxi Province by the end of fiscal 2008 and developing our HV Mobi PINK products with Her Village and other partners.”
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