PEACHTREE FIBEROPTICS INC. INTENDS TO ACQUIRE CONTROL OF GOLD PROJECT LTD.
NORCROSS, Ga., Oct. 19 /PRNewswire/ -- Kenneth C. Taylor, president and chief executive officer of Peachtree FiberOptics Inc. (NASDAQ: PFII) is pleased to announce that Peachtree has entered into an agreement with Chee Chuen Investments Ltd. In this agreement, Chee Chuen will exchange 70 percent of the capital stock of Gold Project Ltd., a Hong Kong corporation, for 90 percent of the shares of Peachtree FiberOptics Inc. on a fully diluted basis. Gold Project Ltd. is in the process of completing acquisition of a television manufacturing facility and real estate located in the People's Republic of China, and this transaction must be completed before the share exchange. The share exchange is subject to an examination to be conducted by Peachtree management of the assets of Gold Project and a confirmation, by Oct. 25, 1993, by management, that the net value of such assets is acceptable. If the exchange occurs, the existing fiberoptics business of Peachtree is expected to be transferred to a subsidiary, and Peachtree will become a holding company for the television manufacturing and fiberoptics businesses. The agreement requires that Peachtree call a stockholders' meeting to, among other things, authorize an increase in the number of shares of common stock to complete the share exchange. The television manufacturing facility to be acquired by Gold Project Ltd. is located in Dong Guon, China. According to Chee Chuen, in 1992 the facility manufactured television sets under the Toshiba brand name for the domestic Chinese market, under the T-Crown name for distribution to Eastern Europe, China and Russia, and for export to the United States under the MTC name. The investment bankers and finders will be issued shares and options to purchase approximately 7.5 percent of Peachtree shares, on a fully diluted basis, in connection with this transaction. Peachtree FiberOptics Inc. is traded on the NASDAQ under the symbols PFII (common) and PFIIW (warrants), and on the Boston Stock Exchange under the symbols PFI and PFIW respectively. The company is engaged in the manufacture of plastic optical fiber using a proprietary production process. -0- 10/19/93 /CONTACT: Kenneth C. Taylor, Peachtree FiberOptics, 404-449-6091/ (PFII)
CO: Peachtree FiberOptics Inc.; Gold Project Ltd. ST: Georgia IN: CPR SU: TNM
MF-JB -- LA022 -- 3980 10/19/93 12:28 EDT
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|Date:||Oct 19, 1993|
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