Comtech Group Completes Private Placement
27 October 2004 - 11:00PM
PR Newswire (US)
Comtech Group Completes Private Placement SHENZHEN, China, Oct. 27
/PRNewswire-FirstCall/ -- Comtech Group, Inc. (OTC:COGO) (BULLETIN
BOARD: COGO) announced today that it completed a private placement
of 5.04 million shares of common stock for aggregate proceeds of
approximately $8.8 million with a group primarily consisting of
institutional investors. Comtech intends to sell an additional 1.26
million shares of common stock for aggregate proceeds of
approximately $2.2 million in a second closing on or about November
4, 2004. C.E. Unterberg, Towbin served as lead placement agent in
the transaction and W.R. Hambrecht + Co. served as co-placement
agent. Comtech intends to apply the net proceeds raised in the
transaction for working capital and general corporate purposes, as
well as for strategic purposes in connection with selected
acquisitions that may be considered to expand its product
offerings. The common stock sold in the transaction has not been
registered under the Securities Act of 1933. Accordingly, these
shares may not be offered or sold in the United States, except
pursuant to an effective registration statement or an applicable
exemption from the registration requirements of the Securities Act.
Comtech has agreed to file a registration statement to permit
investors to resell these shares. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
the stock. About Comtech Comtech Group, Inc. is a module design
solutions provider in China, focused on the mobile handset and
telecom equipment industries. The Company's client base has grown
to serve over 200 companies in the mobile handset and telecom
equipment industries in China. Its team of engineers works with
manufacturers of mobile handset and telecom equipment to design
solutions that meet their needs. The Company designs solutions for
mobile device products, including liquid crystal display (LCD)
modules, camera modules, persistent storage modules, input/output
modules, sound system and power supply modules. In the telecom
equipment industry Comtech targets optical solutions, data
communication solutions, public switched telephone network (PSTN)
switching and wireless base stations. This press release includes
certain statements that are not descriptions of historical facts,
but are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. These forward looking statements may
include the description of our plans and objectives for future
operations, assumptions underlying such plans and objectives and
other forward looking terminology such as "may," "expects,"
"believes," "anticipates," "intends," "expects," "projects," or
similar terms, variations of such terms or the negative of such
terms. Such information is based upon various assumptions made by,
and expectations of, our management that were reasonable when made
but may prove to be incorrect. All of such assumptions are
inherently subject to significant economic and competitive
uncertainties and contingencies beyond our control and upon
assumptions with respect to the future business decisions which are
subject to change. Accordingly, there can be no assurance that
actual results will meet expectations and actual results may vary
(perhaps materially) from certain of the results anticipated
herein. DATASOURCE: Comtech Group, Inc. CONTACT: Hope Ni, Chief
Financial Officer of Comtech Group, Inc., +86-755-267-4327
Copyright