Sinotel Technologies Ltd. Obtains Financing From Local Bank Amidst China's Credit Tightening
Company obtains approximately $5.9 million revolving credit facility from Shenzhen Development Bank
BEIJING, Feb. 10 /PRNewswire-Asia/ -- Sinotel Technologies Ltd. ("Sinotel" or the "Company," D3W.SI and SNOXY.PK), an innovator in the provision of wireless telecommunications infrastructure and solutions in China, announced that the Company has obtained the approval of the Shenzhen Development Bank ("SDB" or the "Bank") to provide credit financing of up to $5.9 million to fund working capital needs to secure 3G projects won in January of 2010.
Together with the existing facility provided by DBS Bank and Hong Kong and Shanghai Bank ("HSBC"), the new credit line will provide the Company with a total credit facility of approximately $19 million, giving it an additional source of working capital to fund future telecommunication projects.
Mr. Jia Yue Ting, Executive Chairman of Sinotel, commented, "Despite the recent tightening of credit markets in China, we are pleased that SDB is supportive of our business and growth. The endorsement of a local bank marks a significant milestone for the Company as this signifies the recognition of our business in China. The timing of the approval is excellent as it comes at a time where we are seeking to take advantage of opportunities as a result of the 3G industry-wide network upgrading."
The facility will compliment funds raised by Sinotel in February of 2010 through a private placement of 28,000,000 shares yielding net proceeds to the Company of approximately $10.9 million.
(All USD figures are based on the exchange rate of US dollars for renminbi as of the week of February 1, 2010).
About Sinotel Technologies Limited
Sinotel began operating in 2002 as a handset distributor and has evolved into a wireless telecommunications innovator that provides a wide range of customized applications and solutions across the telecommunication value chain. Beginning in Shanxi Province six years ago, the Company's business now spans across eight other major provinces. Sinotel customers include well-known major telecommunications companies such as China Unicom and China Mobile.
The Company's key Network Infrastructure Solution is its proprietary multi-carrier wireless system, which enhances customers' wireless telecommunication networks and is compatible with various communication networks such as GSM, CDMA, PHS and WLAN as well as 3G networks such as WCDMA and CDMA2000.
For more information about Sinotel Technologies Ltd., please their website at http://www.sinotel.com.sg . Statements on the Company's website and any other website are not part of this press release.
Forward-looking statements:
Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation and capital expenditures are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions, particularly the current downturn in the worldwide economy; our ability to obtain adequate supplies of raw materials; our ability to manage our expansion strategy; changes in foreign currency exchange rates; government regulation; difficulties in new product development; changing consumer tastes and our ability to address those changes; our ability to attract and retain highly qualified personnel; The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Company:
Sinotel Technologies Ltd.
Ben Ng, VP Corporate Communications and IR
Phone: +65-9168-9988
Email: [email protected]
Investor Relations:
HC International, Inc.
Scott Powell, VP Investor Relations
Phone: +1-917-721-9480
Email: [email protected]
SOURCE Sinotel Technologies Ltd.
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