Phoenician Corporation IV Limited Company Update
Conversion of Deposit
The directors of Phoenician Corporation IV Limited (the "Company" or "PIV") are delighted to announce that they have agreed to convert the deposit made with Amara Holdings Inc ("Amara") on 24 August 2009 into shares either of Amara itself or into a related company, Amara Hong Kong ("AHK"), whichever is the most tax advantageous to the Company. Amara has an equity stake in AHK. In turn, AHK holds a 90% interest in a Shanghai company with a private Chinese Renminbi ("RMB") equity license, called Shanghai Amara.
The directors are currently seeking taxation advice as to which is the more appropriate conversion route. The grant of the private equity license was in part dependent on the deposited funds being immediately available during the period leading up to the grant. Now that approval has been obtained and the license granted, the directors of the Company believe it is an appropriate time to convert the deposit so that the Company can partake as equity holders.
The private equity license facilitates that Foreign Direct Investment Funds can be legitimately invested in the Chinese domestic currency market, RMB, and then appropriately managed with a view towards an exit from RMB back to the investor's originating currency.
As the remaining 10% interest in the license is held by New China Trust & Investment Co. Ltd. ("NCT"), one of the oldest trust companies in China, it is felt that the arrangement with NCT will provide the following advantages:
* A minimum of 1:1 matching of domestic capital to any foreign capital invested.
* Priority access and strong local credibility.
* The ability to negotiate favourable terms in China.
* NCT support on execution after initial investments.
* Access to Chinese domestic RMB capital.
To date there have been only a limited number of RMB private equity licenses granted. The directors believe it will bring significant value to the shareholders and interest to the Company and should facilitate the longer term aim of the Company to seek a suitable acquisition target.
Equity Holding in Prime Investments International Group Limited (formerly Phoenician Corporation V Limited)
The directors of the Company are also pleased to announce to its shareholders the realization of significant value on the completion of the acquisition of Prime Investments Group Limited ("Prime") by one of its investments, Phoenician Corporation V Limited, and its readmission as "Prime Investments International Group Limited" to trading on the PLUS Stock Exchange ("PLUS"). The Company's share position in Prime currently stands at 11,396,619 and the Prime post readmission trading range has been between GBP0.15 and GBP0.20 (15 to 20 pence).
Prime's main asset is a land bank of 67 plots which have a gross floor area of 21,905,000 square feet in a project known as the Eye of Ajman in the Emirate of Ajman, UAE, which Ernst & Young's Dubai office have valued at approximately USD$400,000,000.
For more information on this investment by your Company including Prime's objectives, please refer to:
http://www.plus-sx.com/newsItem.html?newsId=1251515
About Phoenician Corporation IV Limited
The Company was formed with the intention of becoming a vehicle for investments in emerging market businesses that collectively such investments if owned by the Company may command a higher valuation than they would if they remained independent. For more information see the Company's website: www.phoenicianfunds.com.
It is the Company's intention to continue to enhance its balance sheet through the acquisition and sale of assets whilst it searches for an acquisition target.
"THE DIRECTORS TAKE RESPONSIBILITY FOR THIS STATEMENT"
For further information, please contact:
Corporate Adviser:
City & Westminster Corporate Finance LLP
Gerard Thompson & John May
2nd Floor, Stanmore House
29-30 St. James's Street
London
SW1A 1HB
Telephone: 0044 20766 0080
Jason Futko
Phoenician Corporation IV Limited
2nd Floor, Olde Towne Marina
West Bay Street
Sandy Port
N 4825
Bahamas
jfutko@gmail.com