Hartcourt Confirms Merger Talks With Hong Kong Stock Exchange Listed Company;
Company Aims to Broaden Activities in Mainland China
LOS ANGELES, Jul 24, 2000 (BUSINESS WIRE) -- The Hartcourt Companies Inc. (OTC:
HRCT)(Frankfurt: HCT), www.hartcourt.com, today confirmed that its chairman and
CEO, Dr. Alan V. Phan, is in Hong Kong negotiating the details of a potential
merger between Hartcourt and a company listed on The Hong Kong Stock Exchange's
Dr. Phan said, "We are exploring a business combination with a Hong Kong listed
company that would immediately increase the shareholder value of Hartcourt and
give the company greater access to the global capital markets. Hong Kong is the
Asian hub for most major international investment banking firms. We believe that
a Hong Kong listing could equate into greater institutional coverage and
participation and that a combination with a well-positioned partner would cement
the strategic advantages we currently have in place. Our goal is to create a
much larger and dynamic company with double our current shareholder base listed
on multiple exchanges. This would be a true 'win-win' situation for both
The parties agreed that pending the outcome of the negotiations, Hartcourt would
suspend its current efforts to gain listing onto the Nasdaq NMS.
The Hartcourt Companies is a holding and development company that is building a
network of Internet and telecommunication service companies in The People's
Republic of China (China), including Hong Kong, in partnership with Chinese
entrepreneurs as well as Chinese government-owned entities. Hartcourt's business
goal over the next three years is to complete a series of IPO's or spin-offs
focused on three main divisions: the SinoBull E-Finance Platform and wireless
financial services; Broadband ISP and Internet infrastructure; and the Financial
Transactions Group (online banking, insurance, equipment leasing, mortgages,
credit, bill payment, etc.). Detailed information on Hartcourt can be obtained
via the company's Web site, www.hartcourt.com.
Certain statements in this news release may constitute "forward looking"
statements within the meaning of Section 21E of the Securities Exchange Act of
1934. Such forward looking statements involve risks, uncertainties and other
factors, which may cause the actual results, performance or achievement
expressed or implied by such forward looking statements to differ materially
from the forward looking statements.
CONTACT: The Hartcourt Companies
Jack Westfield, 310/410-7290
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