ChinaNet Online Holdings Signs Non-Binding LOI to Acquire an Online Marketing Services Firm
November 28 2011 - 4:15PM
ChinaNet Online Holdings, Inc. ("ChinaNet" or "Company"),
(Nasdaq:CNET), a leading B2B (business to business) Internet
technology company focusing on providing online-to-offline ("O2O")
sales channel expansion services for small and medium-sized
enterprises (SMEs) and entrepreneurial management and networking
services for entrepreneurs in the People's Republic of China, today
announced that the Company has signed a non-binding letter of
intent ("LOI") to acquire a 51% stake in an online advertising and
marketing company based in Beijing, China for approximately $7-8
million.
The target company generated approximately $7 million in
unaudited net sales revenue during the twelve month period ended
September 30, 2011, supported by its innovative web portal that
boasts a three month average Alex global ranking of 5500 and
average daily IP of 136,000.
"We are in discussions to acquire an established leader in the
small office/home office ("SOHO") space, a fast-growth sector that
will help us further diversify our revenues" explained Mr. Handong
Cheng, Chairman and CEO of ChinaNet. "If we are successful in
completing this acquisition, we will have distinct brands in each
customer segment: 28.com for SMEs; Liansuo.com for medium-large
franchises; and the target for SOHO and emerging businesses. With
approximately $21 million in cash at September 30, 2011 and
positive cash flows from operations, we have sufficient funds to
fund acquisitions and support organic growth."
The Company is currently in the process of conducting due
diligence on the target and is negotiating a definitive agreement
containing all material terms for this transaction, including the
purchase price to be paid. While there is no guarantee a
transaction will be consummated, ChinaNet hopes to close the
transaction no later than the first quarter of 2012.
About ChinaNet Online Holdings, Inc.
The Company, a parent company of ChinaNet Online Media Group
Ltd., incorporated in the BVI ("ChinaNet"), is a leading B2B
(business to business) Internet technology company focusing on
providing O2O (online to offline) sales channel expansion service
for small and medium-sized enterprises (SMEs) and entrepreneurial
management and networking service for entrepreneurs in China. The
Company, through certain contractual arrangements with operating
companies in the PRC, provides Internet advertising and other
services for Chinese SMEs via its portal websites, 28.com,
Liansuo.com and Chuangye.com, TV commercials and program production
via China-Net TV, and in-house LCD advertising on banking kiosks
targeting Chinese banking patrons. Website:
http://www.chinanet-online.com .
Safe Harbor
This release contains certain "forward-looking statements"
relating to the business of ChinaNet Online Holdings, Inc., which
can be identified by the use of forward-looking terminology such as
"believes," "expects," "anticipates," "estimates" or similar
expressions. Such forward-looking statements involve known and
unknown risks and uncertainties, including business uncertainties
relating to government regulation of our industry, market demand,
reliance on key personnel, future capital requirements, competition
in general and other factors that may cause actual results to be
materially different from those described herein as anticipated,
believed, estimated or expected. Certain of these risks and
uncertainties are or will be described in greater detail in our
filings with the Securities and Exchange Commission. These
forward-looking statements are based on ChinaNet's current
expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that
future developments affecting ChinaNet will be those anticipated by
ChinaNet. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond the control of the
Company) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by such forward-looking statements. ChinaNet undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws.
CONTACT: MZ North America
Ted Haberfield, President
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Web: www.mz-ir.com
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