Sino Fibre Completes Strategic Private Placement
Thursday April 28, 2008 7:00 am ET.
Sino Fibre Communications, Inc. (OTCBB:SFBE) announced that it has completed a private placement of 1,671,416 units at a price of $0.31 per unit for gross proceeds of approximately $518,140, each unit consisting of one share of common stock of Sino Fibre and one share purchase warrant. Each warrant entitles the holder to purchase one share of common stock for two years from the date of issuance of the warrant with an exercise price equal to $0.31 per share. No factional shares of common stock will be issued on the exercise of the warrants. The number of shares of common stock issuable shall be rounded down to the nearest whole share of common stock. As of today's date, the number of Sino Fibre common stock outstanding is 28,276,506 shares. The units were offered and sold to purchasers who purchased as offshore investors in compliance with Regulation S adopted under the Securities Act of 1933, as amended. The offering of the Units was non-brokered and the shares are restricted. The proceeds of the unit offering will be used to complete Sino Fibre's joint venture with CASME as previously announced.
The joint venture with CASME is to establish an official Chinese government sanctioned barter exchange platform to process business to business ("B to B") transactions among the 4.5 million medium and small private business enterprises currently under the membership of CASME and with the international barter exchange floor. Sino Fibre is to invest $6 million (subject to financing) to own 85% and will manage the joint venture company business, CASME is to bring in Chinese central government sanction, assistance and support, as well as its 4.5 million medium and small private business members to begin the barter exchange and B to B business and will own the remaining 15% of the joint venture.
According to Mr. Gao Guang Yu, the President of China Business Online Co., Ltd. (Sino Fibre's joint venture company with CASME), "By leveraging the strong government support from CASME and CRDC and having the 4.5 million CASME business members in our initial customer pool, Sino Fibre aims to build out the official China barter exchange platform and to become one of the top 'B to B' and barter trade business provider in China and in the world.
" Daniel Mckinney, CEO of Sino Fibre, said, "This is an amazing historical opportunity for us to partner directly with the Chinese government in developing and maximizing the potential of their internal trading and commerce, as well as to the rest of the world. To give our shareholders a point of reference of the value we are creating, Alibaba listed in Hong Kong, raised $1.5 billion in their November 2007 IPO, and has 27 million (C to C and B to C) registered members worldwide."
About the CRDC CRDC (China Reform and Development Commission), the central government's administrative division, is responsible for the economic and business development of China.
About CASME CASME (China Association of Small and Medium Enterprises) is an organization under CRDC leadership, to provide government assistance and support to the Chinese small and medium business enterprises. Further information on CASME may be found at: www.ca-sme.org.
Contact: Daniel Mckinney, Chief Executive Officer +852-3101-7366 Fax: +852-3101-7367 dan.mckinney@sinofibre.com Investor Relations: Dennis Burns 419-951-4842 denny@nvestrain.com www.NVESTrain.com
About Sino Fibre:st fiber optical solutions to international telecommunication companies and large corporations that require Chinese intercity connectivity. Our low cost solutions range from the leasing of intercity dark fiber to providing co-location, broadband transport and IP-centric voice services.
The Sino Fibre Communications Corporation logo is available athttp://www.primenewswire.com/newsroom/prs/?pkgid=4102
Statements, which are not historical facts, are forward-looking statements. The Company, through its management makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors which could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.
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