Contact Information: Contact: China Crescent Enterprises, Inc. ir@chinacrescent.com 214-722-3065
China Crescent Enterprises, Inc. Files Information Statement With SEC in Strategy to Reduce Potential Issuance of New Common Stock, Build Investor Confidence and Boost PPS in Operation With Over $40 Million in Annual Revenue
Details to Be Discussed in Corporate Webcast Scheduled for Friday, March 27th
| Source: China Crescent Enterprises, Inc.
DALLAS, TX--(Marketwire - March 25, 2009) - China Crescent Enterprises, Inc. (OTCBB : CCSE )
has filed a definitive Form 14C Information Statement with the Securities
and Exchange Commission (SEC) and has mailed a copy of the definitive
information statement to its stockholders of record. The Company filed a
preliminary information statement on January 9, 2009 regarding a
comprehensive recapitalization of the Company intended as part of a
strategy to build investor confidence and boost share price. Management
believes the current share price does not reflect the Company's operational
performance. The Company's trailing 12 months revenue as of September 2008
was approximately $42 million with a net income of about $900,000. The
Company's annual revenue in 2007 was $40 million with a net income of $400
thousand.
The definitive information statement filed today addresses the Company's
intention to decrease the number of outstanding shares of its common stock.
In conjunction with this action, the Company is also negotiating a plan to
effectively reduce the number of new common shares that can be issued under
the current majority shareholder's preferred convertible stock agreement.
Preferred convertible stock can be converted into common stock and increase
the number of issued and outstanding common shares. Such increases or even
the possibility of a potential increase in the number of issued and
outstanding shares may have a negative effect on share price.
The plan currently being negotiated involves the Company's majority
shareholder exchanging its current preferred convertible stock for two new
classes of preferred stock. The larger of the two classes would be
non-convertible. Therefore, the potential issuance of new common shares
would be reduced accordingly. The second class of preferred stock, the
smaller of the two classes, would be designated for a future conversion
into common stock with plans to be used in a stock dividend distribution to
the majority shareholder on a pro rata basis.
The majority shareholder, NewMarket Technology, Inc., is comprised of over
10,000 individual shareholders. The future conversion and planned stock
dividend distribution of China Crescent common stock to the majority
shareholder would substantially increase the number of China Crescent
shareholders. Such an increase in the number of shareholders could
potentially have a positive effect on the trading volume of China Crescent
common stock.
Management plans to release further information regarding its strategy to
build investor confidence and boost share price in the scheduled webcast on
March 27, 2009.
Corporate Webcast Scheduled for Friday March 27, 2009
China Crescent has scheduled a webcast for Friday, March 27, 2009 to
preview the upcoming 2008 financial report due March 31, 2009, report on
Company updates and performance year-to-date and to discuss operational
expectations for the remainder of 2009. The webcast will be available for
review on demand, and a link to the webcast will be published on Friday.
Corporate E-mail Updates
To be added to China Crescent's e-mail database to receive company updates
or to obtain more information on the Company, please send an e-mail to
ir@chinacrescent.com or call 214-722-3065.
About China Crescent Enterprises, Inc. (http://www.chinacrescent.com/)
China Crescent Enterprises, Inc. is a technology leader in the rapidly
developing Chinese market specializing today in software engineering, high
quality software development and digital multimedia outsourcing services
delivered to customers globally. At the same time, the firm is a systems
integrator and value added reseller of major global hardware brands in the
Chinese domestic market.
Headquartered in Dallas with operations in Shanghai and Beijing, China
Crescent bridges the gap between Western and Eastern business cultures to
assist western clients in realizing the advantages of the high quality, low
cost technology products and services available from China. China Crescent
also assists Western clients in localizing products and services to realize
the tremendous growth potential available by expanding into the Chinese
Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are forward-looking
statements that are made pursuant to safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Actual results, events and
performance could vary materially from those contemplated by these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause China Crescent's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.