3rd Sep 2007 07:02
Brainspark PLC03 September 2007 FOR IMMEDIATE RELEASE 3 September 2007 Brainspark plc ("Brainspark" or the "Company") Updates on China IPO Group Limited ("China IPO Group") Further to the announcement of 22 May 2007, Brainspark is pleased to reportprogress with China IPO Group, its wholly-owned subsidiary, whose business modelis to make investments in China, both on 6-12 months returns, in pre-IPOsituations, and on a 3-5 year return in high growth small- to medium- sizedtechnology companies. In order to secure potential deal flow, China IPO Group isentering into first refusal relationships with Chinese Science Parks andIncubators. The Company has recently signed two new exclusive contracts with Tianjin TEDAInternational Business Incubator (with more than 180 companies currently beingincubated) and the Tianjin Technology Incubation Center (with more than 100companies). TEDA is part of the Tianjin Economic Development Zone. Tianjin isone of China's largest ports, and a key centre for Electronics, Bio-chemicals,Automobiles, Manufacturing and the Logistics. It is one of four muncipalitiesunder central government control (the others being Beijing, Shanghai andChongqing. It has a population of 10 million people. These contracts, together with the XIBI contract in Xi'an, give China IPO Groupfirst-refusal (subject to China IPO Group maintaining sufficient funds to makesuch investments) over investments in approximately 700 companies currentlyincubated in XIBI, TEDA and TIDI. Business sectors of these companies range fromalternative energies to advanced sensor technologies and added value servicesfor mobile communications. Under the terms of the agreements, China IPO Group'sChinese management company will open offices within the two new incubators,provide training to entrepreneurs of the companies on capital markets,investment principles and international marketing. In addition, the Company willidentify and monitor investment opportunities among the initial 700 incubatedcompanies. The Xi'an office of China IPO Group's Chinese management company has beenoperational since June 2007. China IPO Group is currently engaged in negotiations with other selectedScience Parks in China. Also as announced on 22 May 2007, China IPO Group invested $200,000 (£100,000)of unsecured convertible loan note as a pre-IPO investment in Et-china.comInternational Holdings ("ET-China"), a travel company with its main operationsin Guangzhou (Guangdong Province) primarily engaged in serving the leisuremarket in South China through the sale of air tickets, hotel rooms, packagedgroup tours and associated products and services to corporate entities and toindividual travellers. ET-China has completed its IPO on AIM, on 3 August 2007and following an option awarded to unsecured convertible loan note holders,China IPO Group has converted its loan note into 153,639 ET-China shares, whichat today's price of 105.5p a share are worth £150,000 after having realizedapproximately £15,000 from sale of part of the shares on IPO. Prof. Francesco Gardin and Mr. Dennis Bailey being Directors of the Company andMr. Fogliani have also converted their loan notes on the same terms as China IPOGroup. For further information, please contact: Francesco Gardin, Brainspark plc, telephone: 00 39 335 296573 Roland Cornish, Beaumont Cornish Limited, telephone: 020 7628 3396---------------------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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