Best ... press release ... ever
ChinaTechNews.com directed us to this press release about a publicly traded company named Admax Resources, Inc., and why it is changing its name to China YouTV Corp. The reason is simple, really: Admax has decided to follow the well worn path many companies take — the one where they go from mining minerals in Canada to online video sharing in China.
Wait a minute ... What?
Perhaps "Mr. Gao," from Admax/YouTV, is the only person who can explain this move. The following comes directly form the press release (seriously):
"The Company intends to participate in the fast growing video sharing web site market in China and, at the same time, continue its exploration of mineral properties in British Columbia, Canada," said Mr. Gao. ...The Company acquired a mineral property located in the Province of British Columbia, Canada in 2005 and has not yet determined whether this property contains reserves that are economically recoverable. The Company has started exploration.
We hired a geologist to issue a progress report covering the property. Further, we conducted a reconnaissance exploration program. The field work consisted of prospecting, geological mapping, and sampling. Rock exposures samples were taken and had been sent for plasma and geochemical analysis.
Additional reconnaissance geological work has been completed. Samples were taken and sent for testing. The samples showed no significant mineralization.
If we find mineralized material and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans. If we need additional cash and can't raise it, we will either have to suspend activities until we do raise the cash, or cease activities entirely. If we can't find any mineralized material or it is not economically feasible to remove the mineralized material, we will have to cease activities and focus on the new market: the media and entertainment industry in China.
Well, naturally. (Emphasis added by Shanghaiist.) YouTV has already "signed a Letter of Intent with HuaJu Network, a Chinese Internet Video Sharing Company, to form a Joint Venture in China." We are not sure which of the dozens of Chinese video sharing websites in China HuaJu is responsible for.
Most people who have read this news have the same basic advice for people who may own stock in YouTV: SELL GODAMMIT! SELL!!!!!
Perry Wu, who wrote the ChinaTechNews.com post said this is "yet another reason why I only choose to write about China's tech world, and keep my money far away from the Middle Kingdom and its many dubious listed technology companies."
Imagethief quips, "Is this a gag? It's not April 1 yet. Apparently they haven't heard the news: YouTube isn't making any money."
And Marc van der Chijs, one of the guys behind Tudou, one of the more popular Chinese video sharing sites, "This is so typical of Chinese companies, if one thing does not work they just try someting completely different. ... It's a pity for their investors, and it explains why I only invest in Chinese companies where I know the management personally."
