Xianburg Data Systems Canada Corporation
TSX VENTURE : XDS

November 26, 2010 10:21 ET

O2 Capital Completes Qualifying Transaction, Private Placement and Changes Name to Xianburg Data Systems Canada Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2010) - Xianburg Data Systems Canada Corporation (formerly O2 Capital Inc.) (TSX VENTURE:XDS)(the "Company") is pleased to announce that it has completed its qualifying transaction (the "Qualifying Transaction") pursuant to the policies of the TSX Venture Exchange ("TSXV"). In connection with the Qualifying Transaction, the Company completed a brokered private placement raising gross proceeds of $1,229,750 (the "Offering") and the name of the Company was changed from O2 Capital Inc. to Xianburg Data Systems Canada Corporation. The Company anticipates that at the open of trading on November 26, 2010, the Company will no longer be considered a Capital Pool Company and the Company's common shares will be reinstated for trading on the TSXV under the trading symbol "XDS". The Company will be classified as an IT Products and Services' Tier 2 Issuer on the TSXV.

Completion of Qualifying Transaction

Pursuant to the Qualifying Transaction, the Company acquired all of the issued and outstanding common shares of Xianburg Data Systems (Canada) Inc. ("XDS") from the shareholders of XDS in exchange for 8,166,666 common shares of the Company.

As a result of the Qualifying Transaction, XDS became a wholly-owned subsidiary of the Company. Through a series of agreements with Xianburg International Data Group Co. Ltd., XDS is engaged in the business of data entry with a specialty of converting paper documents to electronic form and the building of high performance, high capacity storage systems for the archiving and publication of such documents. 

The Board of Directors of the Company now consists of five Directors: Omar Ladak (Co-Chairman), Jingping Dong (Co-Chairman), Kabir Jivraj, Sheng (Sam) Wang and Ping Huang. The officers of the Company are Jingping Dong - President and Chief Executive Officer, George Dorin - Chief Financial Officer and Brett Kagetsu - Corporate Secretary.

In connection with the Qualifying Transaction the Company obtained a new CUSIP and ISIN number: CUSIP# 98418T106; ISIN# CA98418T1066. The "old" common shares of the Company (CUSIP #67107B) will be delisted.

In connection with the Qualifying Transaction, the Company issued 225,000 common shares to Canadian Regal International Finance Inc., ("CRIF") a company owned by Sheng (Sam) Wang, a director of the Company, on account of certain consulting services provided to the Company by CRIF.

Details respecting the Qualifying Transaction and Offering can be found in the Company's Filing Statement dated September 24, 2010, which is available for review at www.sedar.com.

Concurrent Private Placement

Concurrent with the Qualifying Transaction, the Company completed a brokered private placement with Canaccord Genuity Corp. (the "Agent"). The Company issued 3,333,333 common shares at a price of $0.30 per share for total gross proceeds of $1,000,000. The Agent also exercised its over-allotment option to acquire an additional 765,835 common shares of the Company for additional gross proceeds of $229,750.

In consideration of the Agent's services, the Company paid the Agent a cash commission of $75,660 and issued the Agent 250,000 common shares of the Company. The Agent also received 252,199 Agent's warrants (the "Agent's Warrants"). Each Agent's Warrant entitles the holder to acquire one common share of the Company at a price of $0.30 for 24 months from the closing date.

The proceeds of the Offering will be used to complete the Company's stated business objectives, repayment of expenses incurred with respect to the Qualifying Transaction and for general working capital. 

The common shares issued in the Offering and the common shares issued to CRIF are subject to a four month hold period and the common shares issued in the Qualifying Transaction are subject to escrow provisions.

About Xianburg Data Systems Canada Corporation

Xianburg Data Systems, through its wholly-owned subsidiary Xianburg Data Systems (Canada) Inc., governs and administers the operating entity Xianburg International Data Group Co. Ltd. ("XID"), a Chinese based operating company, and will earn substantially all of its income from XID. XID is an IT products and services firm with offices in Xi'an and Beijing and it is recognized as a leader in China in providing mass data storage and disaster recovery IT solutions. XID's core business is data entry with a specialty of converting paper documents to electronic format ("digitization") and it also manufactures high-performance, high-capacity storage systems for the archiving and publication of such documents.

XIANBURG DATA SYSTEMS CANADA CORPORATION

This press release includes certain "forward-looking statements" within the meaning of the Canadian securities laws. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include risks related to the development stage of the Company; market fluctuations in prices for securities of similar companies; and uncertainties about the availability of additional financing. Trading in the securities of the Company should be considered highly speculative.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Xianburg Data Systems Canada Corporation
    Farhan Rhemtulla
    Director of Investor Relations
    604-781-3693