Update: Shane McMahon Named CEO Of China Broadband, Inc.
China Broadband, Inc. ("China Broadband" or "the Company") (OTCBB: CBBD), a provider of cable broadband services, and publisher of digital and analog program guides in the Shandong Province of China, is pleased to announce that it has closed a private placement financing with institutional and accredited investors with aggregate gross proceeds of $9.625 million to fund the simultaneous acquisition of Sinotop Group Limited, ("Sinotop"), through which China Broadband will provide integrated value-added services (VAS) solutions for the delivery of Pay-Per-View (PPV), Video-On-Demand (VOD), and enhanced premium content for cable providers in China.
Marc Urbach, President of China Broadband stated, "We are excited to announce the completion of our private placement and acquisition transactions. This has been a very positive reflection of the support from our existing and new shareholders, and we believe this signals the vitality of our new business and commitment as leaders in the premium content space."
Simultaneous with the private placement and the acquisition of Sinotop, China Broadband appointed former World Wrestling Entertainment (WWE) Executive, Shane McMahon, as its Chief Executive Officer.
Mr. Urbach further stated, "Mr. McMahon has been appointed Chief Executive Officer and we are honored to have one of the most seasoned veterans of PPV and premium sports entertainment in the world join the China Broadband team. His highly skilled background in marketing and promotion will be instrumental in moving us forward. In addition we look forward to working with some of the most prestigious and established media companies in China to advance the development of a sophisticated content platform. With the acquisition of Sinotop, our goal is to become the leading provider of VOD and PPV services in China."
The private placement involved the sale of (i) $3.125 million of common units, at a per unit price of $0.05, with each common unit consisting of one share of common stock and a warrant for the purchase of one share of common stock at an exercise price of $0.05, (ii) $3.5 million of Series A units, at a per unit price of $0.50, with each Series A unit consisting of one share of Series A Preferred Stock (convertible into ten shares of common stock) and a warrant to purchase 34.2857 shares of common stock at an exercise price of $0.05, and (iii) $3.0 million of Series B units, at a per unit price of $0.50, with each Series B unit consisting of one share of Series B Preferred Stock (convertible into ten shares of common stock) and a warrant to purchase ten shares of common stock.
Chardan Capital Markets LLC acted as placement agent for the transaction.
For a more detailed summary of the material provisions of the Financing Agreements please see the Company's current report on Form 8-K that was filed with the Securities and Exchange Commission today and is available at www.sec.gov.