Published:
CinTel Corp. Receives Approximately $2.1 Million in Convertible Notes
CinTel Corp. ("CinTel") (OTC BB: CNCN), a
leader of Internet traffic management solutions, today announced that on
November 17, 2005 it received approximately $2.1 million in an investment
from a group of supportive investors in the form of convertible notes,
convertible to the common stock of the company at $0.14 a share, more than
20% premium to the closing price of the stock of $0.115 on that day.
(Please refer to the related 8-K filed on November 21, 2005). Although the
convertible notes will be convertible into approximately 15 million shares,
CinTel hopes to translate this private investment to help with more
invigorated marketing and sales result in 2006.
While CinTel is leveraging its network solution and product/marketing
alliance with Hyundai HDS for greater sales and is solidifying its position
as a leading network solution company, CinTel will be able to capitalize on
a wider range of new business opportunities thanks to this increased
capital base. "We are very pleased that so many investors have shown
interest in investing in CinTel. We were over-subscribed for this round of
convertible notes by several times, but we only received the amount of
money that we need," said Sang-Don Kim, President and CEO of the Company.
"CinTel will use the proceeds from the convertible notes sales to pay down
high-interest debt and to provide sufficient funds for a variety of new
high ROI projects. In my view, this funding was more than just simple
value-investment by investors; rather, it was enabled by investors who
firmly believe that CinTel's future is extremely bright, that it can
deliver on its publicly stated goal of realizing $12 to $14 million of
revenues in the last quarter of this year and that CinTel's future lies
beyond the OTCBB market. The management team feels a greater degree of
responsibility to all of our shareholders and will focus more on maximizing
shareholder value," he added.
About CinTel Corp.
CinTel Corp., while based in the U.S., has its main business operations in
Korea that provide enterprise technology solutions to deliver faster
internal and external network service. It is a company devoted to providing
software and hardware solutions that provide faster Internet service.
Founded in 1997, CinTel introduced Korea's first dynamic server load
balancer, which has now evolved into a world-class product. CinTel's
award-winning Internet Traffic Management (ITM) solutions are marketed to
customers worldwide, enabling the Company's customers to improve Internet
traffic management, service levels and user experience. CinTel maintains
its position as a leader in Internet Traffic Management through continuous
research and development efforts. CinTel is also a recognized leader in
Content Delivery Network (CDN). CinTel offers a comprehensive line of
advanced Internet traffic management solutions and system performance
improvement solutions that help network operators meet the growing need to
manage web access, secure content, improve users' experiences, and reduce
server loads and bandwidth demands. For additional information, please
visit: www.cintelcorp.net or contact J.D. Sparks, 502-657-6077 (O),
502-693-8022 (C), JDSparks@cintelcorp.net.
Safe-Harbor Statement
This press release may contain statements (such as projections regarding
future performance) that are forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to those detailed from time to
time in the Company's filings with the Securities and Exchange Commission.
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