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ChinaTel Group, Inc. (OTCBB:CHTL) is a leader in high speed wireless broadband and telecommunications engineering and construction services has announced today that they have signed and received the first combined installments of two stock purchase agreements calling for a total investment of $640 million into the company. The combined investment represents 48% of the total outstanding shares, valuing ChinaTel at more than $1.33 billion.
ChinaTel's CEO, George Alvarez, stated, "With this infusion of capital, we can pursue our global expansion plans, and accelerate the deployment of the Chinacomm network in the
The investment partners are Excel Era Limited, a Hong Kong-based investment group, and Isaac Organization, Inc., a Canadian-based investor. Excel is investing $480 million and acquiring approximately 159.6 million new shares of ChinaTel's series A common stock to be issued, which represents 36% of total shares issued and outstanding as of the closing date. Isaac is investing $160 million and acquiring approximately 53.2 million newly issued shares, which represents 12% of the total outstanding shares.
ChinaTel's President, Colin Tay remarked: "We have worked very hard to execute transactions beneficial to both our shareholders and our new institutional investors. We selected these investment partners because they provide unique alliances that will facilitate ChinaTel's ability to penetrate additional markets globally."
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