SGOCO Group, Ltd. (NASDAQ: SGOC), (the “Company” or “SGOCO”), a company focused on building its own brands and distribution in the Chinese display market, including monitors, TVs, and application specific products, today announced that it has completed the $2.8 million required capital contribution for its Chinese subsidiary, Guancheng, and has received an extension to complete the capital contribution for its Guanwei subsidiary through December 31, 2011.
Both Guancheng and Guanwei subsidiaries were formed on June 22, 2007. Under PRC law, the Company was required to fulfill the remaining registered capital obligations of these subsidiaries in the amounts of $2,830,030 and $8,750,000, for Guancheng and Guanwei subsidiaries, respectively, prior to December 31, 2010. As noted above, the Guancheng subsidiary’s capital contribution is now complete and the deadline for the Guanwei subsidiary’s capital contribution has been extended until December 31, 2011.
The Company believes the Chinese authorities’ extension of the deadline for the Company’s Guanwei subsidiary to fulfill its capital obligations demonstrates the local government’s commitment to supporting SGOCO as it continues to grow and expand its operations.
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is focused on building its own brands and distribution in the display market, including monitors, TVs, and application specific products. With a network of hundreds of SGOCO Club branded retail partners, the Company is rapidly expanding in China’s tier 3 and tier 4 cities. By providing international standard quality products at affordable prices, the Company believes it is well positioned to take advantage of the emergence of China’s new consumer culture. For more information about SGOCO, please visit http://www.sgocogroup.com.
Safe Harbor and Informational Statement
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements." Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated, including risks as detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”). The Company’s filings with the SEC are available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as required by applicable laws or regulations.