Attached files
| file | filename |
|---|---|
| EX-99.1 - AMENDMENT TO AGREEMENT WITH EXCEL ERA LTD. - VelaTel Global Communications, Inc. | chtl_8ka2-ex9901.htm |
| 8-K/A - CHINA TEL GROUP, INC. FORM 8-K AMENDMENT NO. 2 - VelaTel Global Communications, Inc. | chtl_8ka2-030510.htm |
| EX-99.2 - AMENDMENT TO AGREEMENT WITH ISAAC GROUP - VelaTel Global Communications, Inc. | chtl_8ka2-ex9902.htm |
EXHIBIT
99.3
FOR
IMMEDIATE RELEASE:
CHINATEL
ANNOUNCES AMENDMENTS TO STOCK PURCHASE AGREEMENTS AND RECEIPT $10 MILLION IN
ACCORDANCE WITH AMENDED AGREEMENTS
IRVINE, CA –March 5, 2010 – ChinaTel
Group, Inc. (ChinaTel) (OTCBB: CHTL), a leader in high speed wireless
broadband and telecommunications infrastructure engineering and construction
services, today announced it has entered into amendments to its Stock Purchase
Agreements (SPA) with Excel Era Limited (Excel) and Isaac Organization (Isaac)
and that it has received $10 million from Isaac. The amendments are
the result of extensive negotiations between Isaac, Excel and ChinaTel resulting
from Isaac’s desire to acquire an increased stake in ChinaTel, and at the
request of both investors, for ChinaTel to obtain an extension of an outstanding
ChinaTel promissory note related to ChinaTel’s right to acquire a 49% stake in
Chinacomm Cayman.
Concurrent
with the receipt of funds, Isaac will acquire an additional 53.2 million shares,
bringing its total holdings to 24%, or 106.4 million shares of ChinaTel series A
common stock. To accommodate Isaac’s desire to become a larger
shareholder in ChinaTel, Excel agreed to reduce its shares to 106.4 million
shares of ChinaTel’s series A common stock, leaving it with an equal 24% of
ChinaTel’s shares.
Under the
terms of its SPA Amendment, Excel will pay an installment of $239 million by
March 31; 2010 and the remaining balance of $80 million by December 31,
2010. Under its SPA Amendment, Isaac elected to accelerate its second
installment payment of $10 million to March 5, 2010, instead of March 31, 2010
as called for under the original SPA. Isaac will pay an additional
$20 million by March 31, 2010; $129 million by June 1, 2010; $80 million by
September 30, 2010; and the balance of $80 million by December 31,
2010. The dates and amounts of each investor’s installment payments
were structured to meet the existing needs of ChinaTel’s wireless broadband
network deployment schedule.
George
Alvarez, ChinaTel’s CEO, stated, “It is gratifying to have investors that openly
support our business. We look forward to putting these funds to work
immediately. The $10 million received today provides us with the
necessary capital to begin immediately moving forward with our existing network
deployment.”
“We are
excited by this increased opportunity to invest in ChinaTel. We
strongly believe in the prospects that lie ahead for the Company and want to
demonstrate our support to management and shareholders by accelerating our
second installment payment and doubling our investment to
24%. ChinaTel is at an inflection point in its development, and we
are fully committed to supporting the Company as it moves forward with its
aggressive deployment schedule,” commented Tony Isaac, CEO of
Isaac.
Proceeds
from the contracts primarily will be used to expand and deploy wireless
broadband networks worldwide and to pay off existing convertible note
holders. Full details of the transactions are available on Form 8-K
filed with SEC at www.sec.gov;
subsequent payments will be reported on SEC Form 8-K.
About
ChinaTel Group, Inc.
ChinaTel
Group, Inc. (ChinaTel), through its controlled subsidiaries, provides fixed
telephony, conventional long distance, high-speed wireless broadband and
telecommunications infrastructure engineering and construction
services. ChinaTel is presently building, operating and deploying
networks in Asia and South America: a 3.5GHz wireless broadband system in 29
cities across the People’s Republic of China (PRC) with and for CECT-Chinacomm
Communications Co., Ltd., a PRC company that holds a license to build the high
speed wireless broadband system, and a 2.5GHz wireless broadband system in
cities across Peru with and for Perusat, S.A., a Peruvian company that holds a
license to build high speed wireless broadband systems. ChinaTel’s
vision remains clear: (i) to acquire and operate wireless broadband networks in
key markets throughout the world; (ii) to deliver a new world of communications;
and (iii) to invest in building long-lasting relationships with customers and
partners to lead the broadband industry in customer service and
responsiveness. Its strategy is to build leading-edge IP-leveraged
solutions advanced by its worldwide infrastructure and leadership in emerging
markets. www.ChinaTelGroup.com
Safe
Harbor Statement
This
press release contains forward-looking statements that involve risks and
uncertainties. Actual results, events and performances could vary
materially from those contemplated by these forward-looking
statements. These statements involve known and unknown risks and
uncertainties, which may cause the Company's actual results, expressed or
implied, to differ materially from expected results. These risks and
uncertainties include, among other things, product demand and market
competition. You should independently investigate and fully
understand all risks before making an investment decision.
Contacts:
Retail
Investors
Tim
Matula
ChinaTel
Group, Inc.
Investor
Relations
(Toll
Free) 1-877-260-9170
investors@chinatelgroup.com
Institutional Investors and
Media
KCSA
Strategic Communications Contacts:
Investors:
Todd Fromer / Marybeth
Csaby
212-896-1215 /
212-896-1236
tfromer@kcsa.com /
mcsaby@kcsa.com
Media:
Lewis Goldberg
212-896-1216
lgoldberger@kcsa.com
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