BEIJING, Feb. 10 /PRNewswire-Asia/ -- Sinotel Technologies Ltd. (the "Company," D3W.SI and SNOXY.PK) announces the completion of an $11.4 million private placement of its ordinary shares on February 1, 2010. The Company sold 28,000,000 ordinary shares at a price of approximately $0.4087 per share. UOB Kay Hian Private Limited was the placement agent.
Net proceeds to the company were approximately $10.9 million, after deducting expenses, including a 4.5% commission to the placement agent. Investors included Emirates Tarian Asset Management Pte Ltd., OneEquity SG Pte Ltd. and Asian Trust Investments Pte Ltd. The placement shares were listed and quoted on the Official List of the Singapore Exchange Securities Trading Limited ("SGX-ST") with effect from 9.00 a.m., February 2, 2010.
As a result of the placement, the Company's issued shares increased to 336,000,000 ordinary shares. The placement price of approximately $0.4087 for each placement share represents a discount of approximately 10% of the weighted average price for trades done on the Company's shares on the Singapore Stock Exchange on January 20, 2010 (being the preceding full market day prior to the signing of the Placement Agreement) and up to the time of the trading halt of its shares on January 21, 2010.
Approximately half of the net proceeds will be utilized to fund the purchase of design and testing equipment required in the Company's project work as part of its capital expenditure requirements and approximately half will be utilized to fund the costs and expenditures of projects undertaken by the Company in its ordinary course of business.
(All USD figures are based on the exchange rate of US dollars for Singapore dollars as of the week of February 1, 2010).
About Sinotel Technologies Limited
Sinotel began operating in 2002 as a handset distributor and has evolved into a wireless telecommunications innovator that provides a wide range of customized applications and solutions across the telecommunication value chain. Beginning in Shanxi Province six years ago, the Company's business now spans across eight other major provinces. Sinotel customers include well-known major telecommunications companies such as China Unicom and China Mobile.
The Company's key Network Infrastructure Solution is its proprietary multi-carrier wireless system, which enhances customers' wireless telecommunication networks and is compatible with various communication networks such as GSM, CDMA, PHS and WLAN as well as 3G networks such as WCDMA and CDMA2000.
For more information about Sinotel Technologies Ltd., please visit their website at http://www.sinotel.com.sg . Statements on the Company's website and any other website are not part of this press release.
Forward-looking statements:
Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation and capital expenditures are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions, particularly the current downturn in the worldwide economy; our ability to obtain adequate supplies of raw materials; our ability to manage our expansion strategy; changes in foreign currency exchange rates; government regulation; difficulties in new product development; changing consumer tastes and our ability to address those changes; our ability to attract and retain highly qualified personnel; The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Company:
Sinotel Technologies Ltd.
Ben Ng, VP Corporate Communications and IR
Phone: +65-9168-9988
Email: ben@sinotel.com.sg
Investor Relations:
HC International, Inc.
Scott Powell, VP Investor Relations
Phone: +1-917-721-9480
Email: scott.powell@hcinternational.net
