Kunekt to Design, Build and Market Quality Mobile Phones and Android
Smartphones and Tablets in Developed and Developing Countries
HONG KONG, Jan. 24 /PRNewswire-FirstCall/ - Kunekt Corporation (OTCBB: KNKT), creator of
the Kunekt global brand of affordably priced, quality mobile devices,
including Android smartphones and tablets, signed definitive agreements
to acquire AMS-INT ASIA LTD. ("AMS"), Hong Kong, as a major step in its
business plan to design, build and market mobile devices in developed
and developing countries, initially in China and India.
Under the terms of the agreements, on closing, Kunekt will have 100% of
the interest in the control and management of Guangzhou Xingwei
Communications Technology Ltd. Inc. ("Xingwei"), Guangzhou, China, a
mobile phone design company, and Beijing Yiyueqiji Science and
Technology Development Ltd. Inc. ("Yiyueqiji"), Beijing, China, an
Android smartphone design company. Xingwei has been in operation since
2004 and has 42 employees. Yiyueqiji has been in operation since 2009
and has 18 employees.
Xingwei generated revenue in excess of RMB 33 million ($5 million USD)
(unaudited). Xingwei's CEO and founder is Chengwu Zhu, who previously
worked for telecom giant Huawei and, following the acquisition by
Kunekt, will be the Vice President of Engineering and Operations of
Yiyueqiji is singularly focused on the design and implementation of
Android smartphones, tablets and mobile Internet devices. Yiyueqiji is
headed up by Jin Su, Vice President Engineering, who previously held
senior marketing and product development positions with Motorola China
Technology Limited and VTech Telecommunications (HK) Ltd.
Mark Bruk, president of Kunekt, said, "We will immediately begin
building a sales team together with AMS to market our affordably
priced, quality mobile devices. Our initial targets are the world's
largest mobile phone markets of China and India. This is where the
biggest growth opportunity exists of new mobile phone users and in
these countries we already have established relationships."
Upon closing of the acquisitions, Matt Li, managing director of AMS,
will become the co-chairman, co-CEO and president of Kunekt. Li, an
entrepreneur with more than twenty years of academic and engineering
experience in the network, telecom and wireless industries, has held
various engineering and management positions with startups and Fortune
500 companies, such as Cisco Systems; UB Video; Motorola; Abatis
Systems; and ANV Systems. In the past eight years, he has worked with
three early stage companies, either as a co-founder or an early stage
employee, through their successful capital exits.
Kunekt plans to evolve the Xingwei team into a smartphone and tablet
design group. Together with the Android team at Yiyueqiji, Kunekt will
have a complete design team for mobile phones, smartphones and tablets,
enabling the company to control all aspects of the design,
manufacturing and distribution of its mobile device products.
The combined team has extensive experience, contacts and customers in
China, India and some Southeast Asian markets. Kunekt will have
immediate operational scale with operations in four cities in China
(Hong Kong, Quangzhuo, Shenzen and Beijing) with more than sixty
"This business and skill-set combination enables Kunekt to significantly
advance its business. In one move, we combine the Kunekt brand, a
mobile device design team and an Android design team, fundamentally
repositioning Kunekt from a business in development to an established
mobile phone company," said Bruk, who will be the co-chairman and
co-CEO of Kunekt upon the closing of the acquisitions.
Li added, "These transactions are positive not just for Kunekt but also
for Yiyueqiji's and Xingwei's existing customers."
Kunekt Corp. (OTCBB: KNKT) is a U.S. publicly traded company focused on
designing, building and marketing mobile phones as well as smartphones
and tablets powered by Google's Android mobile operating system. The
company's mission is to build a globally recognized brand in the mobile
device market and deliver smart phones and tablets at prices that are a
fraction of the industry leaders.
The company is listed on the OTC Bulletin Board under the symbol KNKT.
For more information about Kunekt and to sign up for email updates,
visit www.kunekt.com and follow each company on Twitter and Facebook.
Stern & Co.
Andrew J. Barwicki
Barwicki Investor Relations Inc.
Telephone: +1-877-4-KUNEKT (+1-877-458-6358)
ProActive Capital Resources Group LLC
This news release contains "forward-looking statements". Statements in
this news release, which are not purely historical, are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future, such as the following:
(1) statements regarding the management and corporate structure of
Kunekt upon closing of the definitive agreements; (2) that initial
targets upon closing of the definitive agreements will be Indian and
Chinese markets and that the biggest growth opportunities are in the
Chinese and Indian markets; (3) that Kunekt will become an established
mobile phone company upon closing of the definitive agreements; and (4)
that post-closing, Kunekt will have a complete design team for mobile
phones, smart phones and tablets, enabling the company to control all
aspects of their design, manufacture and distribution. It is important
to note that actual outcomes and Kunekt's actual results could differ
materially from those in such forward-looking statements. Actual
results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among others:
(1) a failure to close the definitive agreements; (2) an unwillingness
for the persons named in this release to serve as management of the
company post-closing; (3) an inability to evolve the businesses of the
different companies into a singular group; (4) the ability of Kunekt to
design, manufacture and market mobile phones, smartphones and/or
tablets at all and at a price less than the industry leaders; (5)
Kunekt's ability to remain competitive as other parties develop and
release competitive products; (6) Kunekt's ability to engage reliable
companies to manufacture mobile phones, smartphones and tablets; (7)
the ability of Kunekt to establish a recognized and/or global brand for
its mobile phones, smartphones and tablets; (8) the success by Kunekt
of the sales of its current and new products; (9) the impact of
technology changes on Kunekt's products and on the industry; (10)
general economic conditions as they affect Kunekt and its current and
prospective customers, including a continued downturn in general
economic conditions internationally; (11) the ability of Kunekt to
control costs operating, general administrative and other expenses; and
(12) insufficient investor interest in Kunekt's securities which may
impact on its ability to raise additional financing as required.
Readers should also refer to the risk disclosures outlined in Kunekt's
quarterly reports on Form 10-Q, annual reports on Form 10-K and
Kunekt's other disclosure documents filed from time-to-time with the
SEC at www.sec.gov and available on Kunekt's investor relations website
at www.kunekt.com. Additional information will also be set forth in our
Annual Report on Form 10-K for the year ended October 31, 2010, which
we expect to file with the SEC in January 2011.
All information provided in this release is as of January 24, 2011, and
Kunekt Corporation undertakes no duty to update this information.
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SOURCE Kunekt Corporation