|
Subaye Acquires Minority-Owned Interests in Subaye.com, Inc.
Friday, November 06, 2009
GUANGZHOU CITY, China, Nov. 6 /PRNewswire-Asia/ -- Subaye, Inc. (OTC
Bulletin Board: SBAY)(the "Company"), announced the completion of a Share
Exchange Agreement between the Company and the minority interest owners of
Subaye.com, Inc., the Company's subsidiary, a Delaware corporation. Subaye.com,
Inc. is now a wholly-owned subsidiary of the Company. Independent professional
valuations were completed in order to value both the Company's net assets
without including the net assets of Subaye.com, Inc. and separately, a
valuation of just the net assets of Subaye.com, Inc. was completed. These
valuations were relied upon to support the Company's proposal to the minority
interest holders of Subaye.com, Inc. to purchase the previously outstanding
minority-owned interests of Subaye.com, Inc.
Zhiguang Cai, Chief Executive Officer, stated "the Company has relied on
independent professional valuations in order to consummate the Share Exchange
Agreement. After negotiating with the Subaye.com, Inc. minority interest
shareholders, the Company agreed to issue shares of common stock representing
the approximate value of the minority interests owned by the Subaye.com, Inc.
shareholders. This acquisition will improve our net income dramatically over
the coming years, will remove any uncertainty surrounding the future structure
of the Company and its subsidiaries, and most importantly it will allow us to
fully commit our resources to these wholly-owned businesses to ensure our
internal growth plans are reached."
James Crane, Chief Financial Officer, stated "the assets of Subaye.com,
Inc. that we have acquired today will generate an estimated $61 million in
additional net income during the years ended September 30, 2010 and September
30, 2014. This figure represents the minority interest income which would have
been allocated to the minority interest shareholders of Subaye.com, Inc. if
this transaction had not been consummated. The Company expects to recover the
full cost of the acquisition within the fiscal year ended September 30, 2014."
In accordance with the final Share Exchange Agreement, the Company issued
3,408,852 shares of its common stock in exchange for all outstanding shares of
common stock of Subaye.com, Inc for which the Company did not already own.
Prior to closing the Share Exchange Agreement, the Company reached an
agreement with a shareholder of Subaye.com, Inc. to award 200,000 shares of
the Company's common stock in exchange for canceling stock warrants to
purchase a total of 500,000 shares of Subaye.com, Inc. common stock.
About Subaye, Inc.
Subaye, Inc. ("Subaye" or the "Company") is a leading provider of video
sharing services in the People's Republic of China. Subaye's platform includes
production, upload, storage, sharing and publishing onto more than 33 main
video sharing portal websites. Subaye also offers SaaS business solutions and
is in the process of developing what Subaye believes is the first online
shopping mall in the world that will utilize 3D imaging throughout the online
interface. Subaye platform consists of its websites, http://www.subaye.com ,
http://www.x381.com , http://www.goongreen.org , http://www.goongood.com and
the Subaye Alliance network, which is its network of third-party websites. The
Company's http://www.subaye.com and http://www.x381.com websites are
generating revenue, while its other web-based businesses are under development
or offering free services to potential customers at this time. Subaye's
services are designed to enable internet users to find and view videos online.
As of October 31, 2009, the Company had approximately 56,000 members and the
Company's video database consisted of over 89,000 profiles of corporate video
showcases. These showcases offer a cost-effective venue for small to mid-size
enterprises ("SMEs") to advertise their products and services and establish
and enhance their corporate brands. The Company provides its users with easy
access to an index of over 3.0 million video clips, images and web pages.
For further information on Subaye, Inc., please visit
http://www.subaye.com/english or http://www.subaye-ir.com , the new investor
relations site which should be operational on November 16, 2009. You may also
register to receive Subaye's future press releases or request to be added to
the Company's distribution list by contacting James Crane by email at
jimc@subaye.com . The distribution list should be active by November 16, 2009.
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations,
estimates and projections about Subaye, Inc.'s industry, management's beliefs
and certain assumptions made by management. Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and
are subject to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and uncertainties, the
actual results and performance of the Company may differ materially from the
results expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Subaye, Inc.'s operations are conducted in the
People's Republic of China ("PRC") and, accordingly, are subject to special
considerations and significant risks not typically associated with companies
in North America. These include risks associated with, among others, the
political, economic and legal environment and foreign currency exchange. The
Company's results may be adversely affected by changes in the political and
social conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures, currency
conversion, remittances abroad, and rates and methods of taxation. Other
potential risks and uncertainties include but are not limited to the ability
to procure, properly price, retain and successfully complete projects, and
changes in products and competition. Unless otherwise required by law, the
Company also disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions to the
forward-looking statements made here. Readers should review carefully reports
or documents the Company files periodically with the Securities and Exchange
Commission.
For further information, please contact:
At the Company:
James Crane, Chief Financial Officer
P.R.C. Cell: +86-186-0125-0891
U.S. Office: +1-617-699-6325
SOURCE Subaye, Inc.
|
|
|
|
 |
Planet Calypso and Florida State University Researchers Team up to Study Virtual Buying Habits | Nov 20, 2009
|
|
Cambria Cove: Discover a World of Unexpected Delights Through Exceptional Gifting | Nov 20, 2009
|
|
Toysrus.com Enhances Gift-Giving Convenience With Mobile Shopping, eGift Cards and Expanded Free Shipping | Nov 20, 2009
|
|
3G wireless: more coverage in Woodland Hills, California | Nov 20, 2009
|
|
NBC's 'National Dog Show Presented by Purina,' to Provide Online Coverage of All 160-Plus Competing Breeds | Nov 20, 2009
|
|
Enhance Your Holiday Card Sending with PhotoWorks.com | Nov 20, 2009
|
|
ValueOptions(R) Website Wins National Awards | Nov 20, 2009
|
|
Infection Prevention Online Community Site Launches - Focused on Product Selection | Nov 20, 2009
|
|
Photos: Compete Ranks Top 50 Web Sites for October 2009 | Nov 20, 2009
|
|
HauteLook, A Top Destination for Cyber Monday Savings | Nov 20, 2009
|
|
|
