HONG KONG, Jan 13, 2014 /PRNewswire/ -- Network CN Inc. (OTCBB.NWCN) announced today that the Company has secured the Operating Agreement to co-operate with "Shanghai Changfeng International Sourcing & Investment Co., Ltd." to operate the advertising area of the "Shanghai International Sourcing Center Base" ("the Base") in Shanghai.
Under the agreement signed, Shanghai Changfeng International Sourcing & Investment Co., Ltd. ("ISC") is the owner of the Base and responsible for the Base's management. NWCN will be responsible for the media planning and will be the operator for the whole advertising media of the Base. Under the terms of the Operating Agreement, NWCN pursues the right to operate the advertising area for a five-year period and with another 5 years renewal option.
The Base is located in the core area of Changfeng Ecological Business District, Suzhou River North, Putuo District, Shanghai. The Base comprises an international convention and exhibition center and two office buildings and covers a total construction area of 145,000 square meters and will be put into use as early as the beginning of 2014. It acts as a multi-purpose complex for conferences, exhibitions, offices and catering. With the completion of the Base, the Annual Shanghai International Sourcing Fair ("ISF") will be held in the Base. ISF was upgraded as "National Fair" by the Ministry of Commerce and organized by Shanghai Municipal People's Government.
"It's a great start of the year. We are very excited to announce our first operating agreement in 2014. Under this agreement, we negotiated directly with ISC and NWCN will be the media planner and share the advertising profits with ISC without paying huge rights fee, so we expect to achieve a positive return from this project," commented by Earnest Leung, NWCN's Chief Executive Officer. "Additionally, the Company anticipates that the change of our business model will help to generate positive cashflow with low risk, i.e. instead of paying rights fee for the media platforms, we share the revenue generated from these projects."
Please refer to Network CN Inc.'s website (http://www.ncnmedia.com) for additional details.
About Network CN Inc.
Headquartered in Hong Kong, Network CN Inc. is building a multi-media, multi-application out-of-home advertising network in the key cities of China.
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This press release includes statements that may constitute "forward-looking" statements, usually containing the word "believe", "estimate", "project", "expect", "plan", "anticipate" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, risks related to financing, risks attending the build-out of the Company's media network, acceptance of the Company's products and services in the marketplace, competitive factors and changes in regulatory environments. These and other risks relating to Network CN Inc. business are set forth in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on May 13, 2013, and other reports filed from time to time with the Securities and Exchange Commission. By making these forward- looking statements, Network CN Inc. disclaims any obligation to update these statements for revisions or changes after the date of this release.
Network CN Inc.
SOURCE Network CN Inc.