The Hartcourt Companies, Inc. (OTCBB:HRCT) announced today that it has
signed an agreement for a $25 million equity line funding with Swartz
Private Equity, LLC of Atlanta.
The financial agreement calls for a private equity line for the purchase of
common stock, subject to registration and certain other conditions and
limited to a percentage of dollar trading volume. The financial agreement
will help satisfy working capital requirements of Hartcourt for the year
2000 and will enable Hartcourt to make additional acquisitions of strategic
Internet related operations.
Hartcourt's mission is to become the leading Internet company in Asia.
During 1999, Hartcourt has acquired 58 percent of Financial Telecom Limited
(FTL), the leading financial data bank of Hong Kong and 50 percent of UAC
Online Stock Trading, the first and only E-Trade of China. UAC and FTL are
expected to merge with three other strategic partners to create the premier
financial portal in Chinese Internet. The new entity is expected to do an
IPO as early as second quarter of the year 2000.
Hartcourt has also signed a Joint Venture agreement with Innostar Hi-Tech of
Beijing to create the first national network of wireless ISP and IP phone
service. The operation will utilize the bi-directional KU bands of a Chinese
satellite to connect high-density buildings, offices, colleges and hotels in
Swartz Private Equity, LLC is an investment entity focused on equity
investments in Internet and other high technology companies.
Dr. Alan Phan, Chairman and CEO of Hartcourt, said, "We set our goal to be
the leading Internet company in China by the year 2000. We acquired two
successful and unique Internet operations, UAC and FTL, with projected
income of $5.5 million in 2000. Now we have the financing to back up our
commitments. We have done the impossible and we have obtained more results
than expected. This is one of the finest moments in our company history."
Eric Swartz, President of Swartz Private Equity, commented, "We believe that
Hartcourt has good potential to realize its goal of being the premier
Internet company in Asia. With their recent acquisitions in China, we
recognize their potential and are very pleased to be a part of this unique
WKN Hartcourt 900009