NEW YORK, Feb. 1, 2011 /PRNewswire-Asia/ -- Hotgate Technology, Inc. ("Hotgate" or the "Company") (OTC Bulletin Board: HTGT) on January 18, 2011, through its wholly-subsidiary Shanghai Hongsheng Net Telecommunications Company Limited ("REDtone"), signed a Term Sheet (the "Term Sheet") with Shanghai QianYue Information Technology Co., Ltd. ("QIT") for the acquisition of the entire paid-up share capital of Shanghai QianYue Business Administration Co., Ltd. ("QBA"), amounting to approximately RMB 10 million, for a cash consideration of RMB 7.9 million. QBA is an established prepaid shopping-card issuer in Shanghai.
The predominant terms and conditions of the Term Sheet are:
Prepaid shopping cards are an increasingly common form of consumer and corporate spending behavior in People's Republic of China ("PRC") due to its vast advantages as follows:
In Shanghai, the estimated annual sales of shopping cards is estimated at approximately RMB 18 billion, with a total population estimated around 27 million.
This business will bring values to the Company as follows:
By venturing into this business, the Company will be positioned in E-Sales and distribution of prepaid business in Shanghai which includes prepaid mobile air-time and game reload, discounted call reload and prepaid shopping card.
Hotgate Technology, Inc. and subsidiaries are a group of companies engaged in providing discounted calling services and telecommunications related value added services in the People's Republic of China ("PRC"). The common stock is publicly traded under the symbol "HTGT."
Cautionary Disclaimer -- Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Such forward-looking statements include, among others, the estimation, expectation and/or claim, as applicable. Actual results could differ from those projected in any forward-looking statements due to a variety of risks, uncertainties and other factors. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the Securities and Exchange Commission and available at www.sec.gov .
For more information, please contact: |
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Ivan Wong |
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Tel: +603-8073-2288 |
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Phone: +601-3214-1301 |
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Email: ivan.wong@redtone.com |
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Ng Keng Chai |
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Phone: +601-3338-0970 |
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