BEIJING, Aug. 24, 2012 /PRNewswire-Asia-FirstCall/ -- ChinaCast Education ("ChinaCast" or the "Company", OTC: CAST), a post-secondary education services provider in China, today announced it has secured the Business License and Chops of ChinaCast (Beijing) Education Technology ("CBET"). CBET held the stock of Wuhan Jiyang Education ("Jiyang"), holding company of Hubei Industrial University ("HIUBC"), and China Lianhe ("Lianhe"), holding company of Li Jiang College, before the shares of Jiyang and Lianhe were illegally transferred by prior management in March 2012 prior to such management's removal from their positions with the Company. Securing the Business License and Chops of CBET will assist the Company's efforts to regain legal ownership of Jiyang and Lianhe.
This development follows the Company's earlier recapture of the Business License and Chops of its Shanghai based Yupei Training and ChinaCast Technology (Shanghai) wholly owned subsidiaries in May 2012.
In addition, the Company recently completed the formation of a new Shanghai wholly owned entity that will serve as the new operating base for the Company controlled by new management.
The Company's initial lawsuit against the illegal share transfers of the entities operating the schools has been focused on Jiyang, the entity which owns and operates HIUBC in Wuhan. As previously announced, ChinaCast commenced this suit in July of 2012 and is vigorously pursuing this lawsuit.
Derek Feng, CEO, stated, "Securing the Beijing and Shanghai Chops is an important achievement for the Company. With these Chops, we are now in a position to move forward in our efforts to unwind all illegal contracts and asset transfers that have occurred. We thank the local Chinese authorities for their support in our mission, and also thank all of our loyal employees and partners for their tireless and valuable service."
Safe Harbor Statement
This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements express our current expectations or forecasts of possible future results or events, including projections of future performance, statements of management's plans and objectives, future contracts, and forecasts of trends and other matters. These projections, expectations and trends are dependent on certain risks and uncertainties including such factors, among others, the risk factors described in the Company's periodic and other reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this filing, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. You can identify these statements by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate," "estimate," "expect," "believe," "will likely result," "outlook," "project" and other words and expressions of similar meaning. No assurance can be given that the results in any forward-looking statements will be achieved and actual results could be affected by one or more factors, which could cause them to differ materially. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act.
SOURCE ChinaCast Education Corporation