Update on China IPO
Brainspark PLC
03 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 report
progress with China IPO Group, its wholly-owned subsidiary, whose business model
is to make investments in China, both on 6-12 months returns, in pre-IPO
situations, and on a 3-5 year return in high growth small- to medium- sized
technology companies. In order to secure potential deal flow, China IPO Group is
entering into first refusal relationships with Chinese Science Parks and
Incubators.
The Company has recently signed two new exclusive contracts with Tianjin TEDA
International Business Incubator (with more than 180 companies currently being
incubated) and the Tianjin Technology Incubation Center (with more than 100
companies). TEDA is part of the Tianjin Economic Development Zone. Tianjin is
one of China's largest ports, and a key centre for Electronics, Bio-chemicals,
Automobiles, Manufacturing and the Logistics. It is one of four muncipalities
under central government control (the others being Beijing, Shanghai and
Chongqing. It has a population of 10 million people.
These contracts, together with the XIBI contract in Xi'an, give China IPO Group
first-refusal (subject to China IPO Group maintaining sufficient funds to make
such investments) over investments in approximately 700 companies currently
incubated in XIBI, TEDA and TIDI. Business sectors of these companies range from
alternative energies to advanced sensor technologies and added value services
for mobile communications. Under the terms of the agreements, China IPO Group's
Chinese 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 will
identify and monitor investment opportunities among the initial 700 incubated
companies.
The Xi'an office of China IPO Group's Chinese management company has been
operational since June 2007.
China IPO Group is currently engaged in negotiations with other selected
Science 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.com
International Holdings ('ET-China'), a travel company with its main operations
in Guangzhou (Guangdong Province) primarily engaged in serving the leisure
market in South China through the sale of air tickets, hotel rooms, packaged
group tours and associated products and services to corporate entities and to
individual travellers. ET-China has completed its IPO on AIM, on 3 August 2007
and following an option awarded to unsecured convertible loan note holders,
China IPO Group has converted its loan note into 153,639 ET-China shares, which
at today's price of 105.5p a share are worth £150,000 after having realized
approximately £15,000 from sale of part of the shares on IPO.
Prof. Francesco Gardin and Mr. Dennis Bailey being Directors of the Company and
Mr. Fogliani have also converted their loan notes on the same terms as China IPO
Group.
For further information, please contact:
Francesco Gardin, Brainspark plc, telephone: 00 39 335 296573
Roland Cornish, Beaumont Cornish Limited, telephone: 020 7628 3396
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