SOURCE: Lightscape Technologies Inc.

December 31, 2010 07:00 ET

Lightscape Technologies Inc. Announces Spin-Off of Lightscape Technologies (Greater China) Limited

HONG KONG--(Marketwire - December 31, 2010) - Lightscape Technologies Inc. (PINKSHEETS: LTSC) (the "Company") announces the distribution of its assets to all shareholders by way of spin-off of Lightscape Technologies (Greater China) Ltd. ("LTGC"), its wholly owned Hong Kong subsidiary.

The spin-off of LTGC to all shareholders of the Company will be made on the book close date of December 31, 2010, on the basis of one LTGC share for every share held of the Company. All shareholders of the Company, whose names appear in the register of members as kept by the stock transfer agent of the Company on the book close date, will receive the shares of LTGC and become the shareholders of LTGC on the same date. As a limited company incorporated in Hong Kong, LTGC is the main operating arm of the Company which operates LED solutions, Out-of-home advertising, and media services business in China and Hong Kong, and constitute substantial portion of business and asset of the Company before the spin-off.

The Board had considered many factors in making this decision, which are in the best interest of the Company and its shareholders, including the following:

  • Since the global financial crisis and slow down of the US economy, the Company's share price has declined substantially, and the Board believes the current market price of the Company does not accurately reflect the intrinsic value of the Company.
  • The geographical distribution of the Company's various line of businesses among different subsidiaries of the Company are such that LTGC focuses on LED solutions and Out-of-home advertising business in mainland China and Hong Kong market, with increasing Out-of-home advertising revenue generated from the interactive advertising and information platform within its ever-increasing network of large scale outdoor LED screens and other affiliated networks across the Greater China market. Luminous Lighting Technology (Asia) Ltd., another Hong Kong subsidiary which will remain in the Company, on the other hand mainly focuses on the LED solutions business in Hong Kong and the Asian market.
  • The Board believes that, through the spin-off, the true intrinsic value of LTGC with the added flexibility and possibilities will be ultimately reflected which will benefit all shareholders of the Company directly. The more clearly defined segregation of geographical market will enhance the value of LTGC and the Company as a whole. 

All shareholders and investors are reminded that trading of the Company's shares in the Pink Sheet market on and after the book close date should be taken with care that, effective on the book close date of December 31, 2010, the spin-off shares will no longer be included in the assets of the Company.