Isaac Tops Stake In ChinaTel Group To 24% for $320M; Funds $10 Million
IRVINE, Calif., March 5 /PRNewswire-FirstCall/ -- ChinaTel Group, Inc. (ChinaTel) (OTC Bulletin Board:CHTL.ob <http://finance.yahoo.com/q?s=chtl.ob> - News <http://finance.yahoo.com/q/h?s=chtl.ob> ), a leader in high speed wireless broadband and telecommunications infrastructure engineering and construction services, today announced it has entered into amendments to its Stock Purchase Agreements (SPA) with Excel Era Limited (Excel) and Isaac Organization (Isaac) and that it has received $10 million from Isaac. The amendments are the result of extensive negotiations between Isaac, Excel and ChinaTel resulting from Isaac's desire to acquire an increased stake in ChinaTel, and at the request of both investors, for ChinaTel to obtain an extension of an outstanding ChinaTel promissory note related to ChinaTel's right to acquire a 49% stake in Chinacomm Cayman.
Concurrent with the receipt of funds, Isaac will acquire an additional 53.2 million shares, bringing its total holdings to 24%, or 106.4 million shares of ChinaTel series A common stock. To accommodate Isaac's desire to become a larger shareholder in ChinaTel, Excel agreed to reduce its shares to 106.4 million shares of ChinaTel's series A common stock, leaving it with an equal 24% of ChinaTel's shares.
Under the terms of its SPA Amendment, Excel will pay an installment of $239 million by March 31; 2010 and the remaining balance of $80 million by December 31, 2010. Under its SPA Amendment, Isaac elected to accelerate its second installment payment of $10 million to March 5, 2010, instead of March 31, 2010 as called for under the original SPA. Isaac will pay an additional $20 million by March 31, 2010; $129 million by June 1, 2010; $80 million by September 30, 2010; and the balance of $80 million by December 31, 2010. The dates and amounts of each investor's installment payments were structured to meet the existing needs of ChinaTel's wireless broadband network deployment schedule.
George Alvarez, ChinaTel's CEO, stated, "It is gratifying to have investors that openly support our business. We look forward to putting these funds to work immediately. The $10 million received today provides us with the necessary capital to begin immediately moving forward with our existing network deployment."
"We are excited by this increased opportunity to invest in ChinaTel. We strongly believe in the prospects that lie ahead for the Company and want to demonstrate our support to management and shareholders by accelerating our second installment payment and doubling our investment to 24%. ChinaTel is at an inflection point in its development, and we are fully committed to supporting the Company as it moves forward with its aggressive deployment schedule," commented Tony Isaac, CEO of Isaac.
Proceeds from the contracts primarily will be used to expand and deploy wireless broadband networks worldwide and to pay off existing convertible note holders. Full details of the transactions are available on Form 8-K filed with SEC at www.sec.gov <http://www.sec.gov/> ; subsequent payments will be reported on SEC Form 8-K.
About ChinaTel Group, Inc.
ChinaTel Group, Inc. (ChinaTel), through its controlled subsidiaries, provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China (PRC) with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system, and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. ChinaTel's vision remains clear: (i) to acquire and operate wireless broadband networks in key markets throughout the world; (ii) to deliver a new world of communications; and (iii) to invest in building long-lasting relationships with customers and partners to lead the broadband industry in customer service and responsiveness. Its strategy is to build leading-edge IP-leveraged solutions advanced by its worldwide infrastructure and leadership in emerging markets. www.ChinaTelGroup.com <http://chinatelgroup.com/>
Isaac closes $160 Million deal to buy 12% of ChinaTel Group Inc.
Isaac Organization announced today that it has closed a $160 Million deal to buy 12% of ChinaTel Group Inc. ChinaTel Group Inc., (CHTL) a publically-traded company, filed a "Material Corporate Events" Form 8-K with the Securities and Exchange Commission (SEC) announcing that it has closed deals for $640 Million in equity investment. The $640,000,000 investment comes in exchange for approximately 212 Million shares, or 48% of all outstanding shares in the company. Of the 212 Million shares being issued, Isaac owns 53 Million for 12% of the company. This values ChinaTel Group Inc. at over $1.3 Billion, or $3.01 per share.
Why ChinaTel? The People's Republic of China has about 702 Million wireless subscribers. This equates to more wireless subscribers than in the United States, Canada and Europe, combined. Every month, more than 8 Million people in China become new subscribers. Of the 700+ Million wireless users, 550 Million are subscribers of China Mobile ltd., the third largest company in the world after Exxon and Wal-Mart. ChinaTel, being the fourth largest wireless operator in China after China Mobile ($181 Billion), China Telecom ($33 Billion) and China Unicom ($30 Billion), is poised to becoming a major player in the wireless industry as it owns the exclusive rights to deploy and operate a wireless '4G' broadband network in the 29 largest cities in China.
Isaac completes purchase of 200,000 square foot Grenville College Campus
Isaac Organization proudly announces the completed purchase of the Grenville College Campus in Brockville, Ontario, Canada. The property consists of different buildings totaling 200,000 square feet, overlooking the St. Lawrence River. The buildings sit on 26 acres of land, directly adjacent to the US-Canadian border. The project will be redeveloped into a lifestyle community. Several of the buildings will be converted into a residential/senior housing-mix facility.
Isaac funds movie production for Cohencidence Productions
Isaac has funded the thriller movie Red Herring produced by Cohencidence Productions. "Red Herring" is a neo-noir murder mystery, combining the investigation of "CSI" with the mystery and twists of "The Usual Suspects." The story chronicles Jack Adamson, a Las Vegas homicide detective investigating his best friend, when he discovers a professional assassin on the loose. Robert Scott Howard ("Saw VI Prologue") stars, supported by Vincent Pastore ("The Sopranos"), Holly Valance ("Taken"), Playmate Bobbi Billard, Playmate of the Year Corinna Harney-Jones, Mayor Oscar Goodman, and MMA champ Wanderlei Silva. Theatrical release estimated in fall 2010. Movie trailer located here: http://www.youtube.com/watch?v=anyVECZxBJY
JoellaNamdo government in South Korea awards Isaac and affiliated partners 15.4 mil square meter development project
The JoellaNamdo government in South Korea has awarded Isaac and its affiliated partners a 15.4 mil square meter development project. The project, specifically in the Songcheon District, is approved for a five star hotel and tourism facilities. JoellaNamdo is a province in the southwest of South Korea and consists of five cities and 17 counties. JoellaNamdo will be hosting the Formula 1 races in October 2010.
Isaac buys two Dialysis Medical Facilities in North Carolina from Suntrust Bank
We are pleased to announce the acquisition of two medical dialysis buildings in North Carolina leased by Davita Dialysis. With a market cap of $10 Billion, sales volume of $5 Billion and over 1,400 clinics in the U.S., Davita is the second largest dialysis provider in the United States and in the world. Davita trades on the NYSE (ticker:DVA). The lease is 12 years in term and is an 'absolute triple net lease'.
The seller, Suntrust Bank, is a leading business bank headquartered in Atlanta, GA.
Isaac Organization buys Northside Hospital
building in Georgia
Isaac Organization has completed the acquisition of the Northside Hospital building in Dawsonville, Georgia. The building is newly constructed and is located in a medical complex adjacent to other medical facilities. With more than 5,000 employees , 1,800 physicians and 600,000 annual patient visits, Northside Hospital is considered one of the largest hospitals in the State of Georgia.
U.S. Government takes occupancy
of building constructed by Isaac
The Isaac Organization is pleased to announce that the Social Security Administration, U.S. Federal Government has taken occupancy of its newly-renovated space in Chula Vista, California.
Wachovia Securities funds Isaac’s purchase of
Social Security Administration building in Texas
Wachovia Securities, based in Charlotte, North Carolina, has funded part of Isaac’s acquisition of the Social Security Administration building in Abilene, Texas. The building is newly constructed using state of the art technologies and craftsmanship. The Federal Government will by occupying the building for a minimum period of 10 years.
Business Partners bank funds Isaac’s Concentra
Health Services Building in Houston, Texas
Business Partners LLC has funded Isaac’s purchase of the Concentra Health Services building in Houston, Texas. The building sits on approximately 1 acre of land facing the I-10 Freeway. With over 400,000 daily traffic count, the I-10 is considered one of the most travelled freeways in the State of Texas. The tenant specializes in urgent care and workers compensation. With over 300 medical centers in 40 states, Concentra Health Services provides health care to over 30,000 patients each day. The project is valued at $5,000,000.
Isaac completes acquisition of building
leased by City of Ottawa
The Isaac Organization is pleased to announce the completion of its acquisition of the 60,000 square foot building located at 370 Catherine Street, Ottawa, Canada. The transaction, valued at over $13,000,000, was partly financed by the Royal Bank of Canada. The acquisition also includes a 100-stall parking lot adjacent to the building, leased to the City of Ottawa.
U.S. Federal Government picks Isaac Organization
In a fierce competition, the U.S. Federal Government has awarded Isaac Organization a 12-year lease for developing the Social Security Administration building at 626 L Street in Chula Vista, California. This office will serve all areas south of downtown San Diego and all the way to Mexico. It will be the Social Security office closest to the U.S./Mexican border, considered the busiest international border crossing in the world. Total project is valued at over $12,000,000.