GMDP... Form 8-K for GLOBAL MEDICAL PRODUCTS HOLDINGS INC
1-Mar-2004
Other Events
Item 5. Other Events and Regulation FD Disclosure.
On February 27, 2004, GlobeLink Capital, Inc., an affiliate of the Registrant and EarthNetMedia, Inc., accepted an introductory funding proposal from Villa Noble S.L., Marbella, Spain, in the amount of EURO $50 million (US $62.5 million). The primary purpose of the funding is to provide capital to Chinese companies in which the controlling interest has been conveyed to GlobeLink Capital from Beijing Guo Xin Well-tel Technology Co., Ltd., a division of The Ministry of Information Industry, People's Republic of China (Well-tel).
The first tranche of EUR $10 million (US $12.5 million) will be divided. EUR $5 million will be designated to GlobeLink Capital, Inc. for Chinese investment and EUR $5 million in the Registrant for the acquisition of a ten (10) percent equity in the Registrant. The Registrant will in turn invest EUR $2.5 million to acquire a five (5) percent equity position in EarthNetMedia, Inc. The second tranche of funds in the same amount will be divided as stated above.
The Agreement also states that for each investment that GlobeLink Capital, Inc. makes in a Chinese company, twenty-five (25) percent of the equity received will be distributed GlobeLink Capital, Inc. shareholders in the form of a special dividend.
GlobeLink Capital, Inc. will cause its preferred and common stock to be registered and free trading to Villa Noble's investors at the time of the initial placement of EUR $10 million including each incremental investment thereof to EUR $50 million.
See Exhibit 10.1 Introductory Funding Proposal.
