-- One share of 10% Series A Convertible Preferred Stock. The Preferred
Stock will have an aggregate face value of $10.3 million, and will be
initially convertible into common stock at $2.50 per share.
-- One Series A-1 Warrant to purchase the Company's common stock equal to
one half of the units purchased with a strike price of $3.00 per share.
-- One Series A-2 Warrant to purchase the Company's common stock equal to
one half of the units purchased with a strike price of $3.75 per share.
ChinaNet plans to use net proceeds of approximately $9.5 million from the
offering primarily for the expansion of its online and television
advertising platform and working capital. The Company has agreed to
register for resale the common stock underlying the preferred stock and
warrants. The private equity financing described herein was made pursuant
to the exemption from the registration provisions of the Securities Act of
1933, as amended, provided by Section 4(2) of the Securities Act; Rule 506
of Regulation D promulgated thereunder; and Regulation S promulgated
thereunder. The securities described herein have not been registered under
the Act and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
This press release does not constitute an offer to sell or the solicitation
of an offer to buy any securities. There shall not be any sale of these
securities in any jurisdiction in which such offering would be unlawful.
About TriPoint Global Equities, LLC
TriPoint Global Equities, LLC ("TriPoint Global"), a FINRA member firm, is
a boutique investment bank that provides U.S. and non-U.S. companies of up
to $500 million in revenue with capital raising, corporate finance advisory
services and assistance with navigating the regulatory environment for
companies listing on U.S. markets. TriPoint Global maintains specialized
practices in institutional private placements, mergers and acquisitions,
and corporate finance. TriPoint Global has offices in New York and
Washington, D.C. For more information visit
www.tripointglobalequities.com.
About ChinaNet Online Holdings, Inc.
The Company, a parent company of ChinaNet Online Media Group Ltd.,
incorporated in the BVI ("ChinaNet" or "Zhong Wang Zai Xian"), is a leading
full-service media development, advertising and communications company for
small and medium companies (SME) in China. The Company, through its certain
contractual arrangements with operating companies in the PRC, provides
internet advertising and other services for Chinese SMEs via its portal
website 28.com, TV commercials and program production via China-Net TV, and
in-house LCD advertising on banking kiosks targeting Chinese banking
patrons.
Safe Harbor
This release contains certain "forward-looking statements" relating to the
business of ChinaNet Online Holdings, Inc., which can be identified by the
use of forward-looking terminology such as "believes," "expects,"
"anticipates," "estimates" or similar expressions. Such forward-looking
statements involve known and unknown risks and uncertainties, including
business uncertainties relating to government regulation of our industry,
market demand, reliance on key personnel, future capital requirements,
competition in general and other factors that may cause actual results to
be materially different from those described herein as anticipated,
believed, estimated or expected. Certain of these risks and uncertainties
are or will be described in greater detail in our filings with the
Securities and Exchange Commission. These forward-looking statements are
based on ChinaNet's current expectations and beliefs concerning future
developments and their potential effects on the company. There can be no
assurance that future developments affecting ChinaNet will be those
anticipated by ChinaNet. These forward-looking statements involve a number
of risks, uncertainties (some of which are beyond the control of the
Company) or other assumptions that may cause actual results or performance
to be materially different from those expressed or implied by such
forward-looking statements. ChinaNet undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required under
applicable securities laws.
Contact Information: For further information, contact: Mark Elenowitz TriPoint Global Equities US +1-917-512-0822 Ted Haberfield HC International, Inc. US +1-760-755-2716 www.hcinternational.net