NEW YORK and HONG KONG, April 28, 2008 (PRIME NEWSWIRE) -- Sino Fibre Communications, Inc. (OTCBB:SFBE), a broadband and value-added Internet services provider in China, announced that it has completed a private placement of 1,671,416 units at a price of $0.31 per unit for gross proceeds of approximately $518,140, each unit consisting of one share of common stock of Sino Fibre and one share purchase warrant. Each warrant entitles the holder to purchase one share of common stock for two years from the date of issuance of the warrant with an exercise price equal to $0.31 per share. No factional shares of common stock will be issued on the exercise of the warrants. The number of shares of common stock issuable shall be rounded down to the nearest whole share of common stock. As of today's date, the number of Sino Fibre common stock outstanding is 28,276,506 shares. The units were offered and sold to purchasers who purchased as offshore investors in compliance with Regulation S adopted under the Securities Act of 1933, as amended. The offering of the Units was non-brokered and the shares are restricted. The proceeds of the unit offering will be used to complete Sino Fibre's joint venture with CASME as previously announced.
The joint venture with CASME is to establish an official Chinese government sanctioned barter exchange platform to process business to business ("B to B") transactions among the 4.5 million medium and small private business enterprises currently under the membership of CASME and with the international barter exchange floor. Sino Fibre is to invest $6 million (subject to financing) to own 85% and will manage the joint venture company business, CASME is to bring in Chinese central government sanction, assistance and support, as well as its 4.5 million medium and small private business members to begin the barter exchange and B to B business and will own the remaining 15% of the joint venture.
According to Mr. Gao Guang Yu, the President of China Business Online Co., Ltd. (Sino Fibre's joint venture company with CASME), "By leveraging the strong government support from CASME and CRDC and having the 4.5 million CASME business members in our initial customer pool, Sino Fibre aims to build out the official China barter exchange platform and to become one of the top 'B to B' and barter trade business provider in China and in the world."
Daniel Mckinney, CEO of Sino Fibre, said, "This is an amazing historical opportunity for us to partner directly with the Chinese government in developing and maximizing the potential of their internal trading and commerce, as well as to the rest of the world. To give our shareholders a point of reference of the value we are creating, Alibaba listed in Hong Kong, raised $1.5 billion in their November 2007 IPO, and has 27 million (C to C and B to C) registered members worldwide."
About the CRDC
CRDC (China Reform and Development Commission), the central government's administrative division, is responsible for the economic and business development of China.
About CASME
CASME (China Association of Small and Medium Enterprises) is an organization under CRDC leadership, to provide government assistance and support to the Chinese small and medium business enterprises. Further information on CASME may be found at: www.ca-sme.org.
About Sino Fibre Communications, Inc.
Established in May 2005, Sino Fibre Communications, Inc. is an open source company dedicated to provide international standard fiber optic backbone telecommunications transmission related sales and leasing services in China to all foreign telecommunications carriers and corporate users.
For more information about Sino Fibre Communications, Inc., please visit www.sinofibre.com.
The Sino Fibre Communications Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4102
This Press Release may contain, in addition to historical information, forward-looking statements, such as the establishment of a barter exchange platform to process B to B business, the customer pool expected for the joint venture, Sino Fibre's management of the joint venture, Chinese government sanction, assistance and support for the joint venture and Sino Fibre's investment in the joint venture. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements include, among others, general economic conditions, adverse industry events, industry and government regulation, inability to implement business strategies, competition, currency fluctuations and doing business in China (including risks relating to state ownership, government intervention, foreign investment, repatriation of profits, currency conversion, shareholders' rights, enforcement of judgments, legal system developments, protection of intellectual property rights, permits and business licenses, appropriation, tax, infrastructure and interest rate fluctuations). Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release.