Wednesday January 5, 9:29 pm Eastern Time
Company Press Release
Hartcourt Funding Agreement Increased to $35 Million
LOS ANGELES--(BUSINESS WIRE)--Jan. 5, 2000--The Hartcourt Companies Inc. (OTCBB:HRCT - news) 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 - news) 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.
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Contact:
Hartcourt Companies Inc., Long Beach
Frederic Cohen, 562/426-9796
Company Press Release
Hartcourt Funding Agreement Increased to $35 Million
LOS ANGELES--(BUSINESS WIRE)--Jan. 5, 2000--The Hartcourt Companies Inc. (OTCBB:HRCT - news) 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 - news) 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.
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Contact:
Hartcourt Companies Inc., Long Beach
Frederic Cohen, 562/426-9796
