BEIJING--(Marketwire -09/01/11)- The board of directors of China Infrastructure Investment Corporation (NASDAQ: CIIC - News) held a meeting today to review the evaluation of the pending new asset proposed by company's majority shareholder as partial repayment for the related party loans and to review the write-off of related party loans process. The board also reviewed the revised internal control policies and procedures proposed to the board by the Company's management.
CIIC, incorporated in Nevada, USA and headquartered in Henan Province, China, focuses on investing, constructing, operating and managing infrastructure development projects in China. The Company currently operates the Pinglin Expressway, a 106-kilometer (66 miles) dual carriageway four-lane toll road in the central province of Henan. The Expressway is an important passage from the northwest region to the southeast coastal region of China.
As indicated in the 8-K filed on July 11, 2011, the Company plans to resolve the related-party loans by writing off these loans and, at the same time, injecting a new asset proposed by the majority shareholder as a partial offset. The board reviewed the preliminary audit results prepared by the Company's auditor and the appraisal results of the intended new asset provided by an international asset appraisal company based in Hong Kong. The board also discussed details of the related party loan write-off process as well as the implementation of the new asset injection proposed by the Company's management.
Also during the meeting, the board reviewed the recommendations submitted by the Company's management on revised internal control policies and procedures to ensure sound financial management and to secure shareholder's interest. The board acknowledged the management's effort to improve corporate governance at the Company.
In addition, the board also discussed proposal of shares buy back and shares reverse split in order to comply the minimum $1 trading price requirement of NASDAQ Stock Market. The board understood the management's reasoning that the current share price did not reflect the fair value of Company's stock. The board agreed to give the management authorization to implement a share buy-back at its discretion.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of construction, financing costs and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
No securities regulatory authority has either approved or disapproved the contents of this news release.