Message #15 From:
Stock News Bot Date: October 24, 2006 05:41:00 AM
CNCN News CinTel Corp. receives $15 Million in Convertible Bonds from KTB China Optimum Fund and Other Investors
LOUISVILLE, Ky.--(BUSINESS WIRE)--CinTel Corp. ("CinTel") (OTCBB: CNCN), a leader of Internet traffic
management solutions, today announced that on October 24, 2006, it sold
an aggregate of $15 million in convertible bonds, convertible to the
common stock of the company at $0.50 per share. CinTel plans to use the
proceeds of the investment to continue its strategic acquisitions
towards a more diverse and profitable business. The investors included
KTB China Optimum Fund, one of several venture capital and private
equity funds managed by KTB Networks Inc, the largest listed venture
capital company in Korea, EMLSI, a KOSDAQ listed company specializing in
mobile semiconductors, and Axlon Corporation, KOSDAQ listed company
specializing in intelligent network robots and STS Semiconductor &
Telecommunications Co., Ltd.
As a result of this investment, CinTel anticipates it will have access
into other related businesses in addition to its current focus on the
ITM (Internet Traffic Management) market. CinTel anticipates that it
will expand its business to include semi-conductor planning, design,
distribution and sales starting with packaging, testing of
semiconductors and the component markets. CinTel believes that
redirecting its core business will have a significance influence on the
value of the company for its partners and investors. With the drive to
participate in the semiconductor market, with a significant growth
potential in the near future, Management believes that CinTel will not
only continue to contribute to the development of the IT industry, but
revenues this year will provide CinTel with the base for stable and
rapid growth.
Mr. Sang Yong Oh, Chairman of CinTel’s board
of directors said, “We are very thankful to
the investors of KTBnetwork and the other KOSDAQ listed investors for
their trust in CinTel and their convertible bond investment. We hope to
reward their faith in CinTel by restructuring our organization to become
a highly profitable company in the high-growth tech industries such as
semiconductors. As we have stated in the past, this significant infusion
of capital will no doubt offer CinTel the opportunity to re-list from
the over-the-counter bulletin board to a more significant exchange with
a wider investor base.”
Sang Don Kim, the CEO of CinTel Corp., said, “We
are very pleased to receive the $15 million investment from these
long-term investors at a tremendous premium to the current stock price
of CinTel. Needless to say, this is very good news for current
shareholders of CinTel because this investment affirms that significant
players have faith in CinTel’s long-term
vision. While it was not easy to turn CinTel’s
ITM products into large profits over the past nine years, with this
significant investment, CinTel will be able to become a larger, more
diversified company with significant profits in the near future. This is
merely the beginning of a series of strategic moves that will maximize
value for those shareholders who have been and will remain faithful to
the Company’s long term direction.”
KTBnetwork is an investment company led by a team of highly-qualified
and experienced professionals across all business areas and is a leader
in value-added investment for the incubation and development of
promising forward-looking companies. Since its establishment in 1981, it
has invested more than one billion dollars in about 1,000 companies in
almost every form of private equity, including start-ups, corporate
restructurings, and buyouts. As one of Korea's largest and most
prominent private equity companies, KTBnetwork is now preparing itself
to become an internationally recognized premier investment group.
EMLSI was founded in 2000 as a mobile semiconductor total solution
provider in Korea. It is one of the world’s
largest SRAM solutions providers for mobile application and
semiconductor production companies. It introduced PSRAM (Pseudo Static
Random Access Memory) to the market in 2004 and has become one of the
largest PSRAM suppliers worldwide. It has been listed on the KOSDAQ
since 2005 and is publicly traded.
Axlon was founded in 1991 and focuses on technology, SI and DBMS
businesses. It is expanding its business range in order to transform
itself from a leading ubiquitous mobile solution company into the
intelligent robotics and earphone, Bluetooth and mobile applications. It
has been listed on the KOSDAQ since 2001 and is publicly traded.
STS Semiconductor and Telecommunication is a subsidiary of BoKwang Group
and the biggest semiconductor company in BoKwang’s
network of companies. It started as a semiconductor packaging and
testing specialized company after spinning off from Samsung Electronics
in 1998 and is now a leading semiconductor packaging company, as well as
a total solution provider for memory applications for home appliances,
semiconductors and TFT-LCD application products. STS has been listed on
the KOSDAQ since 2001 and is publicly traded.
CinTel Corp., based in North America with its main business operations
in Korea, provides enterprise technology solutions that deliver faster
internal and external network service. Founded in 1997, CinTel
introduced Korea's first dynamic server load balancer, which has now
evolved into a world-class product line with ever-expanding solutions
from key partners and internal development. CinTel's award-winning
Internet Traffic Management (ITM) solutions are marketed to customers
worldwide, enabling the company's customers to improve Internet and
network traffic management, service levels, secure content, user
experience, and reduce server loads and bandwidth demands. While CinTel
maintains its position as a leader in ITM through continuous research
and development efforts, it has also begun expansion into creative new
markets and worldwide distribution of Korean based technologies. CinTel
is also a recognized leader in Content Delivery Network (CDN). For
additional information, please visit CinTel Corp’s
website.
Safe-Harbor Statement
This press release may contain statements (such as projections regarding
future performance) that are forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from those projected as a result of certain risks and
uncertainties, including but not limited to those detailed from time to
time in the Company's filings with the Securities and Exchange
Commission.
