Press Release Source: China Cable and Communication, Inc.
China Cable and Communication, Citing Improved Operating Outlook, Investor Interest, Says It Will Postpone Reverse Stock Split Indefinitely
Tuesday July 22, 9:02 am ET
HONG KONG, July 22 /PRNewswire-FirstCall/ -- China Cable and Communication, Inc. (OTC Bulletin Board: CCCI - News), which earlier had announced that it planned to effect a 10-for-1 reverse stock split on or around July 15, 2003, today announced that an improved operating outlook has prompted its Board of Directors to postpone such a reverse split indefinitely.
"The initial goal of the reverse split was to qualify CCCI to be a NASDAQ listed company," said CEO Ray Kwan. "However, due to the strong interest investors have shown in the company, its business outlook, and management's emphasis on shareholder value, we determined that such a stock split should be reconsidered at a later time, or be cancelled entirely if the company can qualify for a higher listing based on its own fundamental merits."
"After careful consideration, the Board felt that such an action, at the present time, would not significantly contribute to our planned growth," said the CEO.
"We are in the process of executing our business plan, growing the company, and increasing shareholder value both through organic growth and potential acquisitions. If and when the time seems right, we might still consider a reverse split at some point in the future," Kwan added. "But for now, we are focusing all our energies on growing our core business."
CCCI currently has a 49% ownership in a cable TV transmission company with more than 200,000 subscribers in a market with a population of more than 10 million. The company currently offers 39 channels within the Baoding city limits and eight additional channels to outer areas in the Baoding metropolitan area. It transmits in both analog and digital over its fiber optic network and through 22 substations. In addition to its cable television transmission services, the joint venture also offers Internet access, and anticipates that it will be able to offer value added services such as broadband Internet access, virtual private network and bulk data transmission services by the end of 2003.
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Readers should carefully review risks described in other documents the company files from time to time with the Securities and Exchange Commission, including the annual report on Form 10-KSB for the fiscal year ended October 31, 2002, as well as the quarterly reports and current reports on Form 8-K by the company.
--------------------------------------------------------------------------------
Source: China Cable and Communication, Inc.
