Asia Broadband Completes US$2.29 Million Private Placement.Business Editors ATLANTA & SHANGHAI, P. R. China--(BUSINESS WIRE)--May 5, 2004 The management of Asia Broadband, Inc. (Pink Sheets:ASAB ASAB Association for the Study of Animal Behaviour ASAB Administrative Systems Advisory Board ASAB Allmänna Städnings Aktiebolaget ASAB Atlanta & St. Andrews Bay Railway Company ) is pleased to announce that the Company has successfully completed a US$2.29 million private placement in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and the UK. With all the Company's product lines now in full production, the proceeds will be used to expand the Company's distribution channels, product marketing and staff recruitment. Rathbone Unit Trust Management Limited, a well-established UK Investment Management Company invested US$ 2 million in this private placement. The Company issued 1,145,000 units at a price of $2.00 per unit. Each unit consisted of two Class A common shares, $1.00 of principal amount of a convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. , one share purchase warrant (entitling the holder to purchase one Class A common share for $0.60 during the period commencing 18 months and ending 24 months from closing) and one share purchase warrant (entitling the holder to purchase one Class A common share for $1.00 during the period commencing 18 months and ending 24 months from closing). The debentures bear interest at 2% per year, mature two years from closing and are convertible into shares of the Company's Class A common stock at $0.80 per share. The Company has the right to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the debentures, upon 10 days' written notice to the holder, by paying 105% of the outstanding principal amount plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest. The securities issued in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or an applicable exemption from registration requirements of the Securities Act of 1933. On behalf of the Board of Directors Yuguo Zhang Graham Brant CEO President Notes to the Editor: Asia Broadband Inc. (Pink Sheets:ASAB) is wholly focused on becoming the leading provider of online educational programs in China and throughout Asia. Asia Broadband operates in China trough Trough The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. its 93% owned and controlled Chinese subsidiary Shanghai Broadband Network, Inc. |
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