China Broadband cancels promissory note to free capital for expansion

World IT Report, Apr 8, 2003

Nasdaq-listed China Broadband Corp. announced that it has completed the transaction to acquire for cancellation its$1.7 million promissory note originally issued on September 29, 2000 to SoftNet Inc.

In exchange for the note, the Company issued a two-year warrant to acquire 500,000 common shares of the company at a price of $1.00 per share, and paid accrued interest of approximately $113,000.

"This transaction frees up capital which will enable us to continue our aggressive strategy in pursuing Internet broadband deployment opportunities in China, where our footprint has grown significantly over the last year," stated Mr. Matthew Heysel, Chairman and Chief Executive Officer of China Broadband Corp.

China Broadband, through its operational subsidiary BigSky Network Canada Ltd., forms cooperative joint ventures with municipal network providers to enable high-speed, low-cost Internet access over existing cable TV infrastructure.