SHENZHEN, China, Feb. 16 /Xinhua-PRNewswire/ -- The Intermost Corporation (OTC Bulletin Board: IMOT), a leading electronic online equity exchange service provider in China, announces that its wholly-owned subsidiary, IMOT Information Technology (Shenzhen) Co., Ltd. ("IMOT Information") will restructure the Shenzhen Golden Anke Technology Ltd. ("Golden Anke") and list it on the London AIM or a U.S. stock exchange. IMOT Information owns a 51% shareholding position in Golden Anke.
On February 15, 2007, IMOT Information and other shareholders of Golden Anke entered into an agreement. A new company will be established in Hong Kong, which will acquire 100% equity interest in Golden Anke. The new company will go public on the London AIM or a stock exchange in America.
In consideration of the past agreements and contributions of Golden Anke's original shareholders, the Hong Kong company will be restructured: IMOT Information will hold a 49% share in the Hong Kong company, and other shareholders 51%.
A senior financial commentator said that the listing of Golden Anke will widen the inflow and outflow channels for investment capital. It will strengthen its financing capability and increase the equity interest. As a major shareholder of Golden Anke, the Intermost Corporation will greatly benefit.
Acting CEO of the Intermost Corporation Mr. Xiangxiong Deng said, "Intermost has built up an 'equity service chain' based on the Multi-Layer Capital Market in China. We are acting as an enterprise incubator, i.e. to select well-performing enterprises from the China Equity Exchange Platform ( http://www.chinae.com ), to provide professional consulting services and to assist them in listing on targeted markets. Golden Anke is the first company incubated by the Intermost Corporation."
In 2004, Golden Anke became a holding company of IMOT Information through a stock swap. After years of development, Golden Anke has emerged into a professional security solution company specializing in digital supervision cameras and network video R&D, manufacturing and sales.
Mr. Deng also indicated that the Intermost Corporation is incubating another enterprise, namely its wholly-owned subsidiary Leader Palace International Limited. Leader Palace International specializes in VoIP (Voice over Internet Protocol) business, and brought the Corporation a good revenue of exceeding USD $450,000 in the last quarter.
The new management joined the company in September last year. It is committed to increase shareholder value through capturing and managing opportunities in the emerging Chinese equity exchange market. The goal of the company is striving to be the largest holding company in Chinese equity exchanges. The Chinese capital market has created a total market value of more than US$1.25 trillion, accounting for 50% of GDP. Yet the existing capital and market structure are not able to fulfill the financing needs of over 300,000 non-listed companies and 23,000,000 small and medium sized companies in China. Recently, the Chinese government has given top priority to constructing a Multi-Layer Capital Market in 2007.
At present, the company owns a 15% share in the Shenzhen International
Hi-Tech Property Right Exchange Center ("Shenzhen Exchange") and a 21% share in the Hainan Special Economic Zone Property Rights Exchange Center. Negotiations are underway to increase holdings in the Shenzhen Exchange and add new exchanges to our holding. The company will make announcements when the deals are done.
In the most recent 8K filed with SEC, the company detailed the approach used to spin off Golden Anke. The ultimate goal is to increase shareholder value. As the core of Intermost's business is on exchanges, it is the right time to spin off Golden Anke -- the homeland security business. With a successful IPO of Golden Anke, the company gets another funding avenue without issuing more IMOT shares. The company will use the funds to acquire more holdings in the exchanges. Meanwhile, the shareholder equity will increase with the capital appreciation of Golden Anke.
No insiders have sold any shares recently. The management believes in the long-term growth potential of the company. The share price will eventually catch up as business grows. The float remains unchanged in the recent months. As of February 7, 2007, the float is 45 million shares, most of which were owned by investors bought at high prices between 1999 and 2003. The recent increase in the trading volume reflects the interests of the investors in the directions the new management is undertaking. The shareholder base has increased from a few hundreds to several thousands. The company is committed to communicate with its shareholders and potential investors.
About the Intermost Corporation
Founded in the USA in September 1998, the Intermost Corporation was the first Chinese Internet company listed on the US OTC Bulletin Board (stock symbol: IMOT) in December 1998. The Intermost Corporation has focused its services on the booming Equity Exchange Market in China, including equity-related solution development, equity quotes and information provision, electronic online equity exchange services, direct investment in regional equity exchanges, business incubation services for well-performing innovative enterprises, investment consulting services for overseas listings, the equity portal website -- China Equity Exchange Platform ( http://www.chinae.com ), and otherwise.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks, uncertainties and assumptions that, if they never materialize or if they prove incorrect, could cause the Company's results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company assumes no obligations and does not intend to update these forward-looking statements.
For more information, please contact:
Mr. Chris Liu / Ms. Carmen Liu
Intermost Corporation
Tel: +86-755-8221-0238
Email: ir@intermost.com
