China World Trade Corporation has announced that it has received a US$30 million financial commitment from Cornell Capital Partners, L.P. The flexibility and control through the capital structure will enable China World Trade Corporation to access capital on favorable terms.

As per the signed Standby Equity Distribution Agreement (SEDA), Cornell Capital has committed to provide up to US$30 million of funding to be drawn down over a 24-month period at China World Trade's discretion. As per the official statement, there are no minimum drawdowns required in the agreement. The funds may be used in whole or in part entirely at China World Trade's discretion, subject to an effective registration. The company has also retained Duncan Capital LLC as Placement Agent with respect to the SEDA.

Chi Hung Tsang, chairman, China World Trade Corporation said, We intend to utilize this capital to acquire several smaller travel related, online hotel booking and air ticketing companies in the Guangdong Province. The availability of capital will also assist the company to further enhance our online and dial-up booking systems as well as continuously develop the corporate image of our travel business group. Additionally, some of the capital will be utilized to open new China World Trade Center Clubs in other major cities, such as Shanghai and Changchun in northern China.

The corporation has three divisions: the club and business center; the business traveling services; and the business value-added services. The Business Traveling Services Division will provide, through its operating arm, the New Generation Group, the necessary platform for China World Trade Corp. to focus on the high growth, travel related businesses.

New Generation runs 10 subsidiaries in Southern China in ticketing sales for international and domestic flights as well as inbound business travel, and has already acquired the necessary licenses to operate as a ticketing and travel agent in China. These licenses include 26 licenses as a ticketing agent for international and domestic flights for both cargo and passengers issued by the Civil Aviation Administration of China and the International Air Transport Association and three licenses as a domestic and international travel agent issued by the Administrative Bureau of Tourism of China.