NextMart Further Divests of Supporting Investments in Order to Focus on Women's Apparel Business |
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By: NextMart Inc. Posted: 2007-04-28 07:25:13 |
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NextMart Inc. (OTC
Bulletin Board: SNMD), an online trade media and merchant company today announced that its NextPay business subsidiary, a commercial payment services provider, has received a conditional commitment from a Hong Kong-based fund to invest up to $12.8 million. The structure of the financing deal is subject to government approval and the deal completion is subject to the finalization of NextPay's business plan. As a result of the agreement, NextMart's equity stake in NextPay will become heavily diluted. The Company will become a minority shareholder in NextPay, relying on it only for back-end payment facilitation of NextMart's online wholesale distribution and retail shopping businesses. Going forward, NextMart will not bear any hard costs associated with running the NextPay business. Instead, it will retain marketing rights to NextPay's marketing channels - namely the digital LCD screen on the bank-card enabled telephones that NextPay distributes - and the right to access NextPay's customer database for marketing its own online wholesale distribution and retail shopping businesses. Dr. Bruno Wu, Chairman and CEO of NextMart Inc. commented, "Pending government approval of this agreement, NextPay will obtain the sturdy capital base it needs to grow its operations nationwide. The agreement also relieves NextMart of capital-intensive businesses and helps the Company further divest of operational costs. NextMart is increasingly focusing efforts on growing its core brand management and women's apparel production business in Shanghai. We are confident that this is the path to profitable growth in fiscal 2008." About NextMart Inc. NextMart is an on-line trade media and merchant company that builds direct-buyer communities and services them with digital media offerings, on- line exhibitions and customer loyalty programs. NextMart also builds e- enabled distribution systems, transaction platforms and business communities in fast growing Chinese vertical markets, connecting buyers and sellers with a suite of turnkey digital media, e-commerce, and information management solutions. Companies leverage NextMart's web-based business media communities to access vital industrial intelligence and forge trading relationships with suppliers and buyers that promote cost efficiencies and increased distribution reach. Learn more at http://www.sunnewmedia.net. 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, continued acceptance of NextMart's product and services in the marketplace, competitive factors and changes in regulatory environments. These and other risks relating to NextMart's business are set forth in NextMart's Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2006, and other reports filed from time to time with the Securities and Exchange Commission. By making these forward-looking statements, NextMart disclaims any obligation to update these statements for revisions or changes after the date of this release. Contact Nicholas Topjian, VP Corporate Affairs ir@sunnewmedia.net +917 573 9429 |
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