DAVIE, Fla., March 1, 2004 (PRIMEZONE) -- CBQ, Inc., a Colorado corporation (OTCBB:CBQI) ("CBQ" or the "Company") announced today that it has established a new subsidiary, China Pathfinder Fund, LLC, a Florida limited liability company (CPF), to pursue the business of acting as a funding and merger-and-acquisition or M&A intermediation agent in U.S. and China.
CPF shall seek to match U.S. and Chinese companies seeking funding or M&A candidates with funding sources and takeover candidates and then to act as the principal agent in negotiating and structuring any resulting funding or M&A transactions. CPF will seek cash compensation and equity participation in any of its funding or M&A transactions.
CPF was formed to commercially exploit the deal stream for funding and M&A candidates in the U.S. and China that results from the members' business development efforts and networking.
CPF will rely heavily on the personal business and financial contacts and the efforts of Howard Ullman, CBQ, Inc.'s principal shareholder and current Chairman of the Board and Chief Executive Officer; Cora Yun Wong, a recently appointed director of CBQ, Inc.; and Bart Fisher, an international trade lawyer, a principal shareholder of CBQ and a former officer and director of CBQ.
As is true with most new businesses, there is a substantial risk of business failure within the first two to three years as well as there can be no assurances that CPF will succeed and will contribute any revenues and income to CBQ. CBQ believes that, except for minimal start-up costs, that CPF will not have a material adverse impact on the revenues or potential profits of Souvenir Direct, Inc., CBQ, Inc.'s trading company, because: CPF will use existing CBQ offices and manpower; compensation to the CPF employees and agents will be due and will be paid solely from revenues generated from consummated funding or M&A transactions; CPF may seek additional working capital contributions from potential new members; and CPF's business requires minimal infrastructure or direct overhead expenditures. CBQ expects CPF to be self-funding by the third quarter of fiscal year 2004.
CBQ believes that it is appropriate to provide the key personnel and agents of CPF with an equity participation incentive as well as cash compensation based and derived solely from any successfully consummated funding or M&A deals. The ownership of CPF's membership interests is as follows: CBQ, Inc.: 40%; Ms. Wong, Mr. Ullman and Mr. Fisher each have 20%. Cash compensation of CPF members for successful consummation of funding or M&A deals has not been determined yet.
Business of CBQ
CBQ is a global trading company engaged in product development, manufacturing, distribution, logistics, and product placement into mass retail. The company holds the rights to and sells products to importers, resort and theme parks and others, and ships direct from China to customers worldwide. By establishing relationships with various governmental agencies, public and private institutions, and private industries in China, the Company aims to play a key role in assisting U.S. companies that desire to move production or investments into China as well as helping Chinese firms grow through U.S. distribution and financial support.
Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release, which are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the forward-looking statements. These risks and uncertainties include risks are described in CBQ, Inc.'s Securities and Exchange Commission filings.