Xin Net to Acquire Surveillance and Monitoring Systems Company
📅 - Xin Net Corp. (xinnet.net), a Web hosting and domainregistration company that operates primarily in China, announced today thatit will acquire 100% ownership of ProtectServe Pacific Ltd.(protectserve.com), a Hong Kong-based developer and provider of web-based surveillance, monitoring and control systems.
ProtectServe, which began operations in Feb. 2001, has reported as of June30, 2001 sales revenue in excess of US$530,000 and net income of US$168,000,or a margin of over 30 percent. ProtectServe has plans to expand itsbusiness in Greater China, with office openings in Guangzhou and Beijingtargeted for the next few months.
With Xin Hai Technology Development Ltd., Xin Net's operating arm alreadyrunning the company's joint venture Internet-related services business inGuangzhou, Beijing and other Chinese cities, the company expects high growthin the Asian market.
Prior to a formal purchase agreement being signed, Xin Net may make cashloans to ProtectServe in order to allow ProtectServe to begin implementingits expansion plan. The company will issue 4.2 million restricted commonshares to ProtectServe, in exchange of 100% ownership, and ProtectServe willnominate three new members to sit on the company's board of directors. Inaddition, based on certain performance criteria over the next year, thecompany will grant to ProtectServe stock purchase options at the nominalprice of USD 0.001 per option.
Xin Net also intends to transfer its current business assets andliabilities, except for US$800,000 (which will be used to manage and expandProtectServe operations), to a new US-incorporated company and distribute byway of a dividend this new company's shares, on a pro-rata basis, to companyshareholders as of the record date for the AGM.
ProtectServe, which began operations in Feb. 2001, has reported as of June30, 2001 sales revenue in excess of US$530,000 and net income of US$168,000,or a margin of over 30 percent. ProtectServe has plans to expand itsbusiness in Greater China, with office openings in Guangzhou and Beijingtargeted for the next few months.
With Xin Hai Technology Development Ltd., Xin Net's operating arm alreadyrunning the company's joint venture Internet-related services business inGuangzhou, Beijing and other Chinese cities, the company expects high growthin the Asian market.
Prior to a formal purchase agreement being signed, Xin Net may make cashloans to ProtectServe in order to allow ProtectServe to begin implementingits expansion plan. The company will issue 4.2 million restricted commonshares to ProtectServe, in exchange of 100% ownership, and ProtectServe willnominate three new members to sit on the company's board of directors. Inaddition, based on certain performance criteria over the next year, thecompany will grant to ProtectServe stock purchase options at the nominalprice of USD 0.001 per option.
Xin Net also intends to transfer its current business assets andliabilities, except for US$800,000 (which will be used to manage and expandProtectServe operations), to a new US-incorporated company and distribute byway of a dividend this new company's shares, on a pro-rata basis, to companyshareholders as of the record date for the AGM.
Reads: 1518 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/xin803.cfm
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