China Media Group StockGuru Profile CHMD.OB
CHMD just filed a Prospectus Agreement on August 10. Link Here.
I wanted to make a quick summary of the significant events that CHMD has experienced as they fulfill their contractual agreement with China to provide basic and fundamental healthcare information to the public.
My overall take on the events outlined in the Prospectus is that in one document a clear picture emerges of the evolutionary process CHMD is taking in building an independent media company.
The picture that is painted from the sequencing of events in the Prospectus is that CHMD is fulfilling their contract with China to educate the public AND they are building a media business that will last long after the contractual agreement (which does not end until 2015) is completed.
Link to the Prospectus for further details.
I will share my conversation with the Con Unerkov, CEO of CHMD, soon but before I did that I wanted you to have a good foundation on the recent events as defined in the prospectus.
On July 14, 2007, CHMD entered into a Stock Right Transfer Agreement with the shareholders of Conwood Industrial Limited (’CIL’) to acquire 70% of the issued and outstanding shares of CIL. CIL is a company registered in Hong Kong, which owns 49% of a joint venture company in China that owns and operates a microwave network in Hunan province and has a 25% interests in a digital television channel.
On June 20, 2007, their subsidiary company, Beijing Ren Ren Health Culture Promotion Limited, signed an agreement with Harbin Shengdong Decoration Advertising Ltd. to establish a new joint venture company with a focus on outdoor advertising in the city of Harbin (Heilongjiang Province).
On June 14, 2007, CHMD entered into a contract with a trading and distribution company to advertise its herbal medicine product on their hospital sign boards. This customer would start advertising initially at the Beijing No.6 Hospital where CHMD currently has ten signs constructed. The customer agreed to initially take up two sign boards, and CHMD was in discussions with them on securing additional placements at the other nine hospital locations that were part of their initial rollout once they had been constructed.
On June 12, 2007, the Company’s subsidiary, Beijing Ren Ren Health Culture Promotion Limited implemented plans to aggressively target the outdoor Chinese hospital advertising market with a program designed to initially target ten hospitals, each hospital with an initial rollout of approximately 15 signs making a total of 150 outdoor billboards / light boxes signs per group of ten hospitals.
On June 5, 2007, CHMD announced that it secured contracts in Singapore and Australia from its newly announced expansion of its Telecom & Mobile Computing Business Unit of Broadband Platform/Solutions. Both contracts are Pilot ‘Proof of Concepts’ and are expected to be complete by the end of August 2007.
On June 1, 2007, CHMD announced that it expended its Telecom & Mobile Computing business unit to include the provision of Fixed and Wireless Broadband Platforms/Solutions.
On March 13, 2007, CHMD entered into a Sales and Purchase Agreement to acquire all the issued and outstanding shares of Good World Investments Limited (”Good World”) from Central High Limited (”Central High”) by the issuance of 125 million shares (the “Purchase Consideration”). Good World owns 50% of Beijing Ren Ren Health Culture Promotion Limited (”Beijing Ren Ren” or “BRR”). The Purchase Consideration was negotiated with reference to the BRR accounts and the underlying projects in BRR. Beijing Ren Ren is a company incorporated in China and is working with the Chinese Government on the benevolent project named “Great Wall of China Project”. This project is to provide health education and health awareness in China and accordingly has the right to advertise in hospitals and districts in China. Their directors, Con Unerkov and Alex Ho, officers and directors of the Company, own 25% interests each in, but are not directors or officers of, Central High.
On January 13, 2007, CHMD entered into a Sale and Purchase Agreement with an independent third party to acquire 18% of the registered capital of Guangzhou Waho Culture and Media Co., Ltd. (”GWCM”) for US$243,000, $53,000 of which shall be paid in cash within 6 months and $190,000 of which was paid in 3,518,518 shares issued at the end of February 2007, calculated by reference to the then market value of the shares. GWCM, a Chinese company which focuses its business in online advertising for the China market, has a cooperative agreement with China Tietong Communications Co., Ltd., Guangdong Branch to be the exclusive partner to issue and advertise the China Tietong Guangdong Yellow Pages, both the print and online edition, for the province of Guangdong.
CHMD’s agreement with the Chinese Government pursuant to the United Nations’ Millennium Development Goals Program named this project The Great Wall of China Project, which provides them the potential to grow exponentially and build and retain strong media interests when this contract expires in 2015.
Source: China Media Group
China Media Group Corporation
9901 I.H. 10 West, Suite 800
San Antonio, TX, 78230
Hong Kong Office
1803 Chinachem Tower
34-37 Connaught Road, Central
Hong Kong, China
Phone: +852 3171 1209 ext 222
General Information: info@chinamediagroup.net
Investor Relations: ir@chinamediagroup.net
Website: http://www.chinamediagroup.net
Forward Looking Statement: This release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements contain words such as “expects,” “believes,” “anticipates” and “intends.” Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting the B2B environment; continued ability to obtain hardware, software and peripherals at competitive costs; the company’s ability to finance its planned expansion efforts; the company’s ability to manage its planned growth; and changes in regulations affecting the company’s business and such other risks disclosed from time to time in the company’s reports filed with the Securities and Exchange Commission. The company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in management’s expectations, except as required by law.
Disclosure: Pentony Enterprises LLC has been compensated 1,050,000 restricted 144 shares, shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
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