Hartcourt Funding Agreement Increased to $35 Million
WEDNESDAY, JANUARY 05, 2000 9:44 PM
- BusinessWire
LOS ANGELES, Jan 5, 2000 (BUSINESS WIRE) -- The Hartcourt Companies Inc.
(OTCBB:HRCT) announced today that it has reached an agreement with Swartz
Private Equity, LLC of Atlanta, for an additional $10 million equity line
funding, thus increasing the total funding from Swartz to $35 million. The
reason for the increase was the planned
acquisition of a Linux Internet operation in China.
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 announced the formation of its subsidiary,
Sinobull.com, which is set to IPO in the Spring of 2000 with Ernst & Young
preparing the IPO business plan. Sinobull will be made up of several
Hartcourt entities including Financial Telecom Limited (FTL), the leading
financial data bank of Hong Kong; UAC Online Stock Trading, the first and
only natiowide Online Trading company in China; Guo Mao, a major real-time
financial data provider in Shanghai; StreamingAsia.com Ltd., the leading
Internet software company in Hong Kong; and Shangdi Network of Beijing, one
of three owners of Hua Xia Info, the financial data arm of Hua Xia
Securities, the second largest and best-known brokerage firm in China.
Hartcourt, like Chinadotcom (Nasdaq:CHINA) is one of the first American
companies to establish a strong foothold in the Chinese Internet industry.
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
China.
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 five
successful and unique Internet operations, with projected income of $7.5
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's 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
process."
Certain statements in this news release may constitute "forward-looking"
statements within the meaning of Section 21E of the Securities Exchange Act
of 1934. Such forward-looking statements involve risks, uncertainties and
other factors, which may cause the actual results, performance or
achievement expressed or implied by such forward-looking statements to
differ materially from the forward-looking statement.
WEDNESDAY, JANUARY 05, 2000 9:44 PM
- BusinessWire
LOS ANGELES, Jan 5, 2000 (BUSINESS WIRE) -- The Hartcourt Companies Inc.
(OTCBB:HRCT) announced today that it has reached an agreement with Swartz
Private Equity, LLC of Atlanta, for an additional $10 million equity line
funding, thus increasing the total funding from Swartz to $35 million. The
reason for the increase was the planned
acquisition of a Linux Internet operation in China.
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 announced the formation of its subsidiary,
Sinobull.com, which is set to IPO in the Spring of 2000 with Ernst & Young
preparing the IPO business plan. Sinobull will be made up of several
Hartcourt entities including Financial Telecom Limited (FTL), the leading
financial data bank of Hong Kong; UAC Online Stock Trading, the first and
only natiowide Online Trading company in China; Guo Mao, a major real-time
financial data provider in Shanghai; StreamingAsia.com Ltd., the leading
Internet software company in Hong Kong; and Shangdi Network of Beijing, one
of three owners of Hua Xia Info, the financial data arm of Hua Xia
Securities, the second largest and best-known brokerage firm in China.
Hartcourt, like Chinadotcom (Nasdaq:CHINA) is one of the first American
companies to establish a strong foothold in the Chinese Internet industry.
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
China.
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 five
successful and unique Internet operations, with projected income of $7.5
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's 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
process."
Certain statements in this news release may constitute "forward-looking"
statements within the meaning of Section 21E of the Securities Exchange Act
of 1934. Such forward-looking statements involve risks, uncertainties and
other factors, which may cause the actual results, performance or
achievement expressed or implied by such forward-looking statements to
differ materially from the forward-looking statement.
