SHANGHAI, Dec. 9 , 2010 /PRNewswire-Asia-FirstCall/ -- Headquartered in Shanghai, China Golf Group, Inc. ("China Golf", or the "Company", or "we"), a leading designer and developer of premium golf courses, golf communities and improved land properties in China, and the first of its kind publicly registered and reporting in the United States, today announced selling to a non-U.S. investor 2,000,000 shares of the Company's common stock, par value $.001 per share, at the price of $1.25 per share (the "Second Round PIPE"). The Second Round PIPE was under substantially the same terms as the financing of the Company that was completed on September 9, 2010 (the "First Round PIPE"). The details of the First Round PIPE and the Second Round PIPE can be found in the Company's Current Report on Form 8-K filed with the SEC.
Combining the First Round PIPE and the Second Round PIPE, China Golf has issued 2,939,992 million shares of Common Stock priced at $1.25 each for an aggregate purchase price of $3,674,990. The Company said it plans to use the proceeds for a number of acquisitions, for which the Company has already engaged in negotiations, and general corporate purposes.
Commenting on the private placement, Mr. Tiger Bi, China Golf's Chief Executive Officer and Founder, was pleased about the close of this transaction. "This gives us more flexibility and strength to execute on a number of strategic and operational initiatives that we have been working on for some time", said Mr. Bi.
About China Golf Group
Founded in 2006, China Golf Group ("China Golf" or the "Company") is a Shanghai headquartered, leading designer and developer of premium golf courses, golf communities and improved land properties sold to developers of private residence villas and/or corporate clubs. In July 2010 China Golf merged with a Delaware public company and filed with the U.S. Securities and Exchange Commission ("SEC"). China Golf designs, constructs and develops premium golf courses and golf communities in the People's Republic of China ("PRC") through our PRC based operating companies. We offer a full spectrum of golf course development and management services, including design, engineering, construction, and maintenance of golf courses as well as consulting and management of golf projects. Since the formation of Beijing Shungao in 2006, we have completed over ten golf courses in China. With our influential strategic partners, we are expanding our business to an invest-design-build-sell model with an objective to become the top golf course management company and the largest golf course chain in China.
For more information on the Company, please visit http://www.chinagolfgroup.com/
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include "forward- looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements". Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward- looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Phone: 86 21 5876 5017
SOURCE China Golf Group, Inc.