DAVIE, Fla., Aug. 5, 2004 (PRIMEZONE) -- China Direct Trading Corp. (OTCBB:CHDT), a global trading company engaged in product development, manufacturing, distribution, logistics, and product placement into mass retail, announced today that it has signed a $2.5 million equity line with Boston-based Dutchess Private Equities Fund, II, LP.
Under the terms of the agreement, the company (CHDT) may elect to receive as much as $2.5 Million from Dutchess in common stock purchases over the next two years.
Howard Ullman, President of China Direct, stated, "We have been very diligent in our research of potential funding sources. Choosing Dutchess was based upon several key factors. We were particularly impressed by the high caliber of companies with which they have entered into similar financial agreements, and the measurable ongoing support those companies received from the Boston based Dutchess Advisors. We found that virtually their entire portfolio of funded companies experienced measurable growth in their industry sectors following their initial agreement with Dutchess."
The financing supplied by Dutchess secures China Direct's position as a leading global trading company. "We intend to use the funds to grow revenues by increasing our exposure in the marketplace as well as putting us in a considerably stronger position to take advantage of strategic acquisitions, both domestically and overseas. The current opportunities for growth and development are greater now than ever," said Howard Ullman.
The company elected a $2.5 million equity line so the underlying registered shares for the line would leave ample room for share exchange acquisitions without increasing The Company's outstanding authorized shares.
CHDT is a global trading company engaged in product development, manufacturing, distribution, logistics, and product placement into mass retail. The company holds patents and sells products to importers, theme parks and direct to retail 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. In addition, the company acquires and invests in innovative products, services, or technology companies.
About Dutchess Private Equities Fund, LP
Dutchess Private Equities Fund, II, LP is engaged in assisting growth companies in all facets of their long-term strategy by providing capital and progressive business solutions. The Company, manages a portfolio of private investments in public equities through two funds. Founded in 1996, Dutchess has been involved in excess of $300 million in financings for such companies.
FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" within the meaning of the federal securities laws. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Many factors are beyond the company's and its subsidiaries' control. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's existing and future filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.