China Unitech Group, Inc. Completes Reverse Acquisition of Shenzhen Based Internet Cafe Company
SHENZHEN, China, Jul 2, 2010 (GlobeNewswire via COMTEX) -- China Unitech Group, Inc. (the "Company") (OTCBB:CUIG) announced that it has successfully closed a share exchange transaction with the shareholder of Classic Bond Development Limited, a British Virgin Islands corporation (" Classic Bond"). The Company will operate through its variable interest entities in China to execute the current business plan of those affiliates, which involves the operation of a chain of China-based internet cafes. The new public company is quoted on the OTCQB Market under the ticker symbol "CUIG."
In the share exchange transaction, Classic Bond's shareholders were granted 19,000,000 newly issued shares of the Company's Common Stock, representing approximately 94% of the total issued and outstanding capital stock of the Company, in exchange for 100% of the issued and outstanding shares of Classic Bond. After the share exchange transaction, there are 20,200,000 shares of the Company's Common Stock outstanding.
As a result of the share exchange transaction, Classic Bond has become a wholly-owned subsidiary of the Company. Mr. Dishan Guo was appointed to the Board of Directors of the Company and the Company's executive officers were replaced by the executive officers of Classic Bond and its subsidiaries upon the closing of the share exchange. The Company plans to amend its Articles of Incorporation to change the name of the Company to China Internet Cafe Holdings Group, Inc.
"We are delighted to have successfully closed the going public transaction," said Dishan Guo, the new Chairman of the Company. "Our company has continued to grow in the past. We expect that being a U.S. public company will provide us with a good trading platform. We also look forward to leveraging our public listing to become a recognized national internet cafe operation under our Dragon Surf brand."
As of March 31, 2010, the Company's variable interest entity owned a chain of 28 internet cafes in Shenzhen, Guangdong, China. It provides top quality internet cafe facilities and is the largest internet cafe chain operator in Shenzhen. The Company provides internet access at reasonable prices to students and migrant workers. Over 99% of its revenues come from selling access time to our computers.
About China Unitech Group, Inc.
China Unitech Group Inc. is the holding company of Classic Bond Development Limited. Operating through its variable interest entity in China, Junlong Culture Communication Co. Ltd ("Junlong"), is a leading internet cafe chain operator headquartered in Shenzhen, China. Established in 2003, Junlong is one of the largest of five internet cafe chain operators in Shenzhen with 28 company-owned stores. Junlong's internet cafes are operated and managed under the Dragon Surf brand. Its robust system offers a one-stop entertainment and media venue for customers including VOIP, instant messaging, online games, snacks and drinks. Its internet cafes are typically located in high traffic areas that target mature students and migrant workers. The Company currently employs about 300 full time employees.