China Voice Holding Corp. announced that it will receive $10 million in cash over the next two years as well asÂ receive up to 21 million shares of FLTT valued at approximately $8 million in exchange for its U.S. operating subsidiaries and 15,000,000 shares of CHVC common stock. The transaction provides China Voice with additional capital to take advantage of synergistic opportunities in China. The company intends to continue to maintain offices in the United States and will retain most of their key Executives and Board of Directors.
China Voice President and CEO, Bill Burbank said, “This cash and stock transaction provides capital resources to fund our move onto a new trading exchange and beyond as well as additional funds for software development to support the Company’s current and new China Unicom cellular opportunities in China. While this transaction reduces most of CHVC’s current sales revenue, it will however enable the Company to streamline its global operations and eliminate much of the associated costs in the U.S. With the immediate and additional investment into China, CHVC expects to quickly ramp sales and to be profitable by mid-2009.”
“The Flint Telecom Group is a well funded company with plans to move to the American Stock Exchange, now called the NYSE Alternext Exchange. Flint’s telecommunications network, technology and enhanced services platform allow Flint to produce various products and services which will generate higher profit margins than CHVC was able to achieve with its U.S. operations. The transaction is a true ‘win-win’ for both companies. We also expect to realize substantial future growth in our investment in Flint,” he continued.
Commenting on the opportunity in China, Burbank stated, “China is about the only economy on the planet with both short and long-term growth potential. With a population of 1.3 billion, the Chinese telecommunications market is the largest and fastest growing in the world and currently has the largest number of broadband subscribers, VoIP users, fixed line and mobile subscriber base. China’s telecom market is now growing at an annual rate of 17%, almost twice the pace of overall economic growth according to Ministry of Information Industry of China.
“We have spent years developing our technology, services, relationships and supporting infrastructure, and now it is time to dedicate all of our resources to China, which will significantly speed up our success in this region. In addition, now that our Form 10 has become effective, when we advance to a more recognized trading market, we will be in a much better position to acquire additional synergistic companies in China,” he concluded.
Let us hear your thoughts: China Voice Holding Message Board