Attached files
| file | filename |
|---|---|
| 8-K - China Wi-Max Communications, Inc. | v205397_8k.htm |
CONFIDENTIAL
COMMUNICATION
|
To:
|
CHWM
Investors and Shareholders
|
|
From:
|
Eric
Hager, Executive Vice President
|
|
Date:
|
December
10, 2010
|
|
Subject:
|
General
Update – Business Planning &
Funding
|
Dear
Investors:
I am
pleased to formally introduce myself to you as I transition from a consulting
role to an executive role with CHWM going forward. Even with the
challenges of operating with limited funding, I am convinced that CHWM has the
potential to be successful in the largest Internet market and
beyond. Frankly, I would not have accepted my new position with the
Company under any other circumstances, and I am proud to be part of the
Management Team.
With
start-up companies like CHWM, it is quite common for the stock to fluctuate
(change) up and down. This is normal. The Company has a
very strong and talented management team that is working hard to create and
sustain shareholder value over time. Execution of our business plan
is underway – including the monetizing of strategic assets in China (fiber and
5.8 GHz rights), the development of strategic alliances and joint ventures, and
seeking out potential acquisitions that will jump-start our revenue and
value. I discuss some of these important opportunities in this
update.
As the
Company recently stated in its press release of October 27, 2010, we have
secured the beginning of revenue generation via the provision of broadband
services to a commercial customer in Beijing. This is the initial phase of our
agreement with CJ Network. To further execute our agreement, CHWM
will need to invest approximately $200,000 to interconnect and “light up”
buildings located on our network and establish a point of international
termination for VPN services.
Also,
CHWM has entered into various joint venture and cooperation agreements for fiber
transport from Hong Kong to mainland China cities with local termination on
CHWM’s fiber and 5.8 GHz wireless networks. CHWM intends to invest in
International “meet me” facilities in Hong Kong with network equipment resulting
in exclusive rights. CHWM anticipates utilizing $300,000 to $500,000
to fully build out these network elements and begin marketing of International
Virtual Private Line Services (VPLS). CHWM will have
significant fiber bandwidth for a modest investment.
Concurrent
with development of VPLS, CHWM plans to acquire a US-based telecommunications
company. This business is an existing, profitable telecom
company. The company supports a broad base of telecom services and
technologies ideally suited for China. While we cannot report
that this transaction is completed, we are currently in discussions with various
groups to finance the acquisition of this important strategic company and
more.
Stating
the obvious, all companies require a lot of money to grow – and they require
time to execute their business plan. CHWM is no
different. The opportunities discussed herein need funding to be
realized. We are working on this with vigor.
Examples
include the following:
1) We
entered into a $10M Equity Line of Credit in June, which we hope to utilize in
2011;
2) We are
conducting discussions with several venture capital funds, including one in
Europe;
3) We are
discussing additional joint ventures in China to extend the relationship with CJ
Network to Shanghai and international gateways; and
4) We
are conducting discussions with a group in Hong Kong regarding potential and
strategic alliance opportunities in China, and with telecom counterparts in
Mumbai, India.
I am
pleased that we have so many prospects. I am optimistic we will see
progress soon. The key to implementation is funding. With
funding we intend to move aggressively to implement our business
plan.
I invite
you to call or email me directly to discuss any CHWM-related
matters. On behalf of the entire management team, I thank you
for your continued support.
Regards,
/s/
Eric Hager
Executive
Vice President
China
Wi-Max Communications, Inc. (CHWM)
Phone: 303-517-6026
Email: erichager@chinawi-max.com
SAFE
HARBOR STATEMENT
The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made on behalf of the company. All such
forward-looking statements are, by necessity, only estimates of future results
and actual results achieved by China Wi-Max Communications, Inc. (China Wi-Max)
may differ materially from these statements due to a number of factors.
Important factors relating to the Company's operations could cause results to
differ materially from those in forward-looking statements and are further
detailed in filings with the Securities and Exchange Commission (SEC) available
at the SEC website (http://www.sec.gov ). All forward-looking statements are
based on information available to China Wi-Max and China Wi-Max assumes no
obligations to update these forward-looking statements to reflect actual
results, changes in assumptions or changes in other factors affecting such
statements. You should independently investigate and fully understand all risks
before making investment decisions.