ENCINO, Calif., Aug. 22, 2001 (PRIMEZONE) -- Sporting Magic, Inc., (OTCBB:SPMA) today announced it had signed a Letter of Intent to acquire 100% of all the outstanding shares of China Xin Network (Canada) Inc. (CXN), a privately held global provider of financial, economic and business information on the People's Republic of China. Under the terms of the agreement, Sporting Magic Inc. will issue 14,418,283 shares of its common stock from its treasury for all the outstanding shares of China Xin Network (Canada) Inc. The acquisition is anticipated to close by September 30, 2001.
As a result of the acquisition, China Xin Network will become a wholly owned subsidiary of Sporting Magic. Concurrent with the closing of the acquisition, Sporting Magic will change its name to better reflect the global scope of its new business, and the current directors and officers of Sporting Magic will resign, and new directors and officers selected by China Xin Network will be appointed. Currently, 758,857 shares of Sporting Magic common stock are outstanding.
China Xin Network had announced on June 1, 2001, that it had obtained the exclusive rights to commercialize the English, French and Spanish version of the China Economic Information Network, China's most reliable source of financial and economic information. The addition of the China Economic Information Network enables CXN to provide a wide range of complementary financial, economic and business information never available before.
J.F. Amyot, CXN's CEO, stated, "China's entry into the World Trade Organization, and its emerging policy of privatization, will accelerate multinational companies investment in China." As a result, these companies will rely heavily on up-to-date economic information to make strategic decisions. Our exclusive agreement with China Economic Information Network positions CXN to significantly capitalize on this demand."
Mr. Amyot further stated, "That being a U.S. publicly traded company, CXN will gain better access to capital markets to expand our operations, and to grow our company through strategic acquisitions."
"We are extremely delighted to afford our shareholders the opportunity to participate in the ever increasing worldwide demand for information on the economic conditions, general corporate and business statistics, and industry trends in the People's Republic of China," said Mr. Buddy Young, President of Sporting Magic. "CXN's strong management team combined with their excellent business model greatly enhances the Company's potential for growth and profitability," added Mr. Young.
About CXN
China Xin Network (Canada) Inc. is a global provider of financial, economic and business information on the People's Republic of China. CXN's content is the most reliable business-to-business content available on the People's Republic of China. CXN's team of business correspondents source, produce and publish information with the highest accuracy, integrity and speed. Using state-of-the-art Internet technologies, CXN can update it's customers in real-time, enabling them to make accurate and reliable decisions. www.cxnonline.com
Sporting Magic's common shares are traded over-the-counter on the over-the-counter "Bulletin Board" system, under the symbol "SPMA."
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The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections or future performance of the company; the occurrence of which involves certain risks and uncertainties that could cause the company's actual results to differ materially from expected results. Such risks include the timing of implementation and the scope and success of the program described herein.