BEIJING, China, April 14, 2010 (GLOBE NEWSWIRE) -- China Networks International Holdings Ltd ("China Networks" or the "Company") (Pink Sheets:CNWHF), a television advertising operator based in China, announced today the completion of a financing in which the Company raised $11 million through the sale of senior secured convertible debentures with a conversion price of $1.14. Upon completion of financing, the outstanding capital of the Company will consist of 41,019,993 common shares,16,000,000 preferred shares and a total debt of $11 million.
China Networks offers domestic and international advertisers access to viewers and stations across its member network throughout China, and the net proceeds from the transaction will be used to fulfill the remaining payment obligations to its Kunming joint venture partners and for general working capital purposes.
Mr. Shuangqing Li, the Company's Chairman and Chief Executive Officer says, "We are pleased to report the completion of our financing. This infusion of additional capital significantly improves our current financial standing. By solidifying our position in Kunming, we look forward to the next phase of our development as we continue our operations in generating advertising revenue in tier 2 and 3 cities and pursuit of additional opportunities. We intend on actively pursuing potential acquisitions of additional TV stations in the coming years."
Chardan Capital Markets acted as lead placement agent and Euro Pacific acted as co-placement agent on this transaction.
About China Networks
China Networks International Holdings, Ltd., is a media advertising company focusing on providing international and domestic advertising to its exclusive networks in tier two and tier three cities in China. Currently the Company owns and operates a 50% interest in the Kunming Taishi Information Cartoon Co., Ltd. (Kunming) and Shanxi Yellow River & Advertising Networks Cartoon Technology Co., Ltd (Yellow River) Joint Ventures. Combined, Kunming and Yellow River represent coverage of 7 television channels and 1 radio station covering 36 million people. China Networks, along with its joint venture partners seeks to add more television stations to its advertising network. For more information about China Networks, visit www.chinanetworks.com.
The China Networks International Holdings Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7329
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our securities offering and the anticipated use of the net proceeds of the offering, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "believes," "expects" or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov.