Hui Cong pulls back from TV ad sales

HC International, Inc., the Hong Kong-listed parent of China’s Hui Cong, has announced the transfer of its entire 100% interest in China Media Network International Inc. ('CMN') to the NASDAQ-listed Metaphor Corp. (MTPH.OB). HC will receive 28.68% of Metaphor’s shares and a US$3,785,000 cash payment.

The company says that it will realise a gain of approximately RMB38.1 million (US$4.9 million) from the disposal of its CMN interest. It says that it will use 60% of these proceeds to expand its existing fast-growing portal business by exploring overseas markets and pursuing mergers and acquisitions.

In its most recent SEC filing (a 10 SQB), Metaphor says of the transaction that "we would acquire certain assets from an Asian company along with the gross proceeds of an equity or debt financing which amounted to not less than USD $15,000,000".