ZHUHAI, China and NEW YORK, July
19 /PRNewswire-Asia-FirstCall/ -- China Architectural
Engineering, Inc. ("CAE" or the "Company") (Nasdaq: CAEI), a
provider of design, engineering, fabrication and installation
services of high-end building envelope systems, today announced
that it has received an extension of the waiver agreement from its
bondholders for the Company's proposed acquisition of a majority
stake in Shanghai ConnGame Network Co. Ltd. ("ConnGame").
Under the extended waiver agreement, the Company is able to move
forward with its proposed acquisition of a 60% equity interest of
ConnGame for the issuance of the 25 million CAEI shares, subject to
compliance with the terms and conditions of the waiver. In the
waiver, the Company agreed that it would pay to The Royal Bank of
Scotland N.V., London Branch and
CITIC Capital China Mezzanine Fund Limited all outstanding interest
in arrears on the bonds, plus all other applicable interest up
until the payment date, within 30 days after the closing of the
ConnGame acquisition and issuance of the shares, but no later than
September 30, 2010. The Company has
also agreed to pay all unsettled amounts of an overdraft facility,
which include all outstanding principal and interest amounts.
The Company also announced today that it has filed its
definitive information statement with the Securities and Exchange
Commission and intends to mail out the information statement to its
shareholders in this week. CAE intends to close the ConnGame
acquisition after 20 calendar days of the mailing in accordance
with federal proxy rules.
The proposed acquisition of ConnGame is subject to a number of
closing conditions, including but not limited to the bondholders'
continued waiver of their rights to a reduction in the conversion
price of the Company's outstanding convertible bonds and exercise
price of the related warrants as a result of the proposed
acquisition and execution of a definitive acquisition agreement for
the proposed acquisition.
Mr. Ken Yi Luo, the Company's
Chief Executive Officer and Chairman, commented, "We are pleased to
have received an extended waiver from our bondholders, providing
CAE time to complete the final documentation of our ConnGame
acquisition. We appreciate the support of our bondholders and look
forward to the completion of the ConnGame acquisition in the near
future. We believe that the dedicated efforts of our management
team will drive the company's growth and reward our shareholders in
the long run."
About China Architectural Engineering
China Architectural Engineering, Inc. (NASDAQ:CAEI) is a
provider of design, engineering, fabrication and installation
services of high-end curtain wall systems, roofing systems, steel
construction systems, and eco-energy systems. Founded in 1992, CAEI
has maintained its market leadership by providing timely,
high-quality, reliable, fully integrated, and cost-effective
solutions. Collaborating with world-renowned architects and
building engineers, the Company has successfully completed over one
hundred large, complex and unique projects worldwide, including
numerous award-winning landmarks across Asia's major cities.
For further information on China Architectural Engineering,
Inc., please visit http://www.caebuilding.com
About Shanghai ConnGame
Shanghai ConnGame, founded and led by seasoned experts with
extensive previous success in China's online game industry, develops and
operates MMORPGs in China.
Leveraging its innovative game engines, scalable development
platforms, and accomplished production teams, ConnGame focuses on
self-developed MMORPGs game titles that are based on China's iconic characters and nostalgic
epochs.
Forward-Looking Statements
In addition to historical information, the statements set forth
above may include forward-looking statements that may involve risk
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Actual
results could differ materially from the expectations contained in
forward-looking statements as a result of risks and uncertainties,
including, but not limited to, the negotiation and execution of a
definitive acquisition agreement for the proposed acquisition;
closing conditions including but not limited to regulatory
approvals; required Company payments and other obligations under
the waiver agreement; difficulties related to integration and
management of the combined operations; reduction or reversal of the
Company's recorded revenue or profits due to "percentage of
completion" method of accounting and expenses; the Company's
ability to obtain a modification for the Waiver agreement with the
bondholders applicable to the proposed acquisition of ConnGame;
increasing provisions for bad debt related to the Company's
accounts receivable; fluctuation and unpredictability of costs
related to our products and services; the Company's plans to enter
into real estate development projects such as the Nine Dragons
Project; adverse capital and credit market conditions; fluctuation
and unpredictability of costs related to the Company's products and
services; expenses and costs associated with its convertible bonds,
regulatory approval requirements and competitive conditions. These
and other factors that may result in differences are discussed in
greater detail in the Company's reports and other filings with the
Securities and Exchange Commission.
For more information, please contact:
Investor Contact:
ICR:
Michael Tieu
Tel: +86-10-6599-7960
Email: michael.tieu@icrinc.com
Bill Zima
Tel: +1-203-682-8200
Email: bill.zima@icrinc.com
SOURCE China Architectural Engineering, Inc.