GUANGZHOU, China, Jan. 8 /PRNewswire-Asia/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT), a mobile phone handset, pre-paid calling card distributor and provider of value-added mobile services in China, reported a debt settlement agreement entered with Enable Growth Partners LP, Pierce Diversified Strategy Master Fund LLC, and Enable Opportunity Partners LP (collectively, the "Holders"), to settle certain convertible debentures and common stock purchase warrants pursuant to a transaction dated July 31, 2007 and amended on November 3, 2008. Pursuant to the Settlement Agreement, all the warrants outstanding to the Holders and convertible debts which is approximately $2.9 million as of September 30, 2009 will be settled by a total payment of $1,300,000 to the Holders by the Company by no later than January 21, 2010. In addition, the Holders have agreed to cancel all of the Company shares held by them at such time as the payment has been made. In other words, the Company may have $1.6 million net profit once $1.3 million settlement payment is made on time.
"We appreciate much of the efforts made by our convertible debt holders to settle these debts, which will create a win-win situation. After settling these debts, the Company will be able to focus resources and capacity on ordinary business, and not to worry about the debt repayment pressure from the original debt once we settle these debts before the deadline. In addition, our capital structure will be more healthy, and it will be more feasible to accept additional capital to meet the new business development's requirements," said CEO Li Yankuan. "We hope it can open a new era for the Company's development path."
About Guangzhou Global Telecom
Guangzhou Global Telecom, Inc. is a national mobile phone handset and pre-paid calling card distributor and provider of mobile handset value-added services. Maintaining cooperative relationships with China Telecom, China Mobile and China Unicom, the Company seeks to become the largest sales and distribution center of mobile phones, mobile phone parts and prepaid mobile phone cards in China. GTL plans to introduce new software and services through an expanded network of regional and neighborhood service centers, shops and virtual stores. For details, please visit our website at http://www.guangzhouglobaltelecom.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
Judy Chen
Phone: +86-20-8317-2821
Email: info@guangzhouglobaltelecom.com
