SOURCE: China Wi-Max Communications, Inc.

China Wi-Max Communications, Inc.

August 23, 2010 06:30 ET

China Wi-MAX Communications Announces $10M Reserve Equity Financing Agreement With AGS Capital

DENVER, CO--(Marketwire - August 23, 2010) -  China Wi-Max Communications, Inc. ("China Wi-MAX") (OTCBB: CHWM) announces a Reserve Equity Financing Agreement with AGS Capital Group (AGS) in a commitment to purchase, over a period of two years, shares of China Wi-MAX common stock for cash consideration up to an aggregate of $10 million. 

Steven Berman, President and CEO of China Wi-MAX, noted, "This funding plan will support China Wi-MAX's current operations by providing the necessary capital to allow the execution of our Business Plan, both organically and through merger and acquisition activities, in the rapidly expanding broadband telecommunications market in China, and international data services market. AGS is a strong financial partner, with a track record of successfully helping companies grow. We look forward to working closely with them to build sustainable value for our shareholders through a significant global business." 

The Reserve Equity Financing provided by AGS represents cost effective and flexible financing that places China Wi-MAX in control of how and when it raises equity and debt. 

China Wi-MAX will provide, through one or more of its wholly-owned foreign entities and joint venture companies, a diverse array of telecommunications and internet services to customers situated in buildings that are networked via its fiber and wireless assets. The Company anticipates acquiring emerging Internet companies, including value-added telecommunications and a fiber transport and engineering companies with high growth and profit potential. 

A joint venture has been signed with a PRC authorized Internet Service Provider, which will provide China Wi-MAX access to additional buildings on Third Ring Road fiber in Beijing. This agreement also provides a framework for serving additional buildings using China Wi-MAX wireless assets, with a termination center for international VPN, cooperating in sales and sharing revenue. China Wi-MAX anticipates utilizing financing of up to $200K to complete interconnection to China Wi-MAX's Fourth Ring Road as well as bring new buildings onto the networks. 

China Wi-MAX is in discussions to acquire a majority interest in a premier provider Wi-Fi Hotspot roaming access and settlement services for the major Chinese telecom operators and major International telecom operators. The services support roaming between carriers within China and for international partner's clients traveling in China. The services are reciprocal for Chinese traveling internationally, currently estimated at eight million travelers a month. This transaction is expected to complete within 45 days, pending financing to support an investment commitment of up to $750K. China Wi-MAX expects this acquisition to potentially contribute up to 25% of its Five Year Pro Forma Plan. 

China Wi-MAX has entered into various joint venture and cooperation agreements for fiber transport from Hong Kong to mainland China cities and local termination on China Wi-MAX metro fiber. The Company intends to invest in lighting dedicated fiber with network equipment resulting in exclusive rights to use. With this capital facility, China Wi-MAX anticipates utilizing $300K to $500K to fully build out these network elements and begin marketing of International Virtual Private Line Services. 

About China Wi-MAX Communications, Inc.:  (OTCBB: CHWM) is a multinational telecommunications and internet service company with plans to operate in ten cities in China which have rapidly expanding broadband communications needs by providing IP Transport, internet access, and value added internet services in China. The Company has acquired fiber assets in Beijing and Hangzhou, as well as option agreements to purchase fiber in Shanghai and has acquired licenses for 5.8 GHz wireless frequency in Beijing, Shanghai and Hangzhou. Through the combination of fiber and wireless networks, China Wi-MAX is able to provide high bandwidth and high quality of service to a large number of customers at an economical cost. The Company is positioning itself to be a premier provider of managed international data services for foreign corporations operating in China, and world class roaming data services for international and Chinese travelers. 

China Wi-MAX is headquartered in Denver, Colorado. It is an Over the Counter Bulletin Board Company which is dually reported on the OTCBB and OTCQB. 

About AGS Capital Group:  AGS Capital Group provides debt and equity financing solutions for growth-stage and mature public companies as well as private companies looking to go public. With offices in New York, Hong Kong, and India, AGS Capital Group has facilitated the growth of companies within the U.S. and those domiciled in foreign markets around the globe. 

Safe Harbor Statement:  This press release contains forward-looking statements that involve risks and uncertainties. The statements of this Summary Overview are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results, events and performances could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results, expressed or implied, to differ materially from expected results. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making an investment decision.

Contact Information

  • China Wi-MAX Communications, Inc.
    Email Contact
    303-993-8028

    USA Headquarters
    Steven T. Berman
    President and Chief Executive Officer
    Denver Tower
    1905 Sherman Street
    Suite 335
    Denver Tower
    Denver, Colorado 80203
    Office Phone: 303-993-8028
    Toll Free: 1-800-830-1978
    Fax: 303-993-8172

    Investor Relations:
    Jim Prange
    920-912-7444
    Email: Email Contact

    Richard Carpenter
    Capital Group
    415-332-7200
    Email: Email Contact

    China Wi-MAX Communications, Inc.
    China Headquarters
    Building E, Suite 119
    No. 1 East Shangdi Street
    Haidian District
    Beijing 100085 China
    China Wi-MAX Communcations, Inc.