Yangtze Telecom is negotiating a non-brokered private placement totaling up to 15 million shares at $0.18 per share with accredited investors.
The placement was initiated by Kevin He, a director of Yangtze, who oversees the various businesses of Yangtze's 65% owned subsidiary, China United Telecom Technology Company Limited (UTT).
He indicates that he has received commitments totaling $1.8 million to date. The gross proceeds of up to $2.7 million from the placement are to be used to increase Yangtze's ownership of UTT wherein such investment will be used to further develop the businesses of UTT, particularly the Credit Management Services business and Distance Learning.
Terms of the financing were settled recently after several weeks of discussion. This financing is subject to regulatory approval. The securities to be issued will be subject to a minimum four month hold period from the date of closing.