Kingold Jewelery (NASDAQ:KGJI)

Activeworlds Corp. Completes Acquisition of Chinese Gold Jewelry Manufacturer, Wuhan Kingold Jewelry Co., Ltd.

Transaction Details

Shares Structure Pre-reverse Merger

• 6.2 million common
• Modified Terms of Existing Warrants: 1.6 million shares with an exercise price of  $0.598

Share Structure Post Merger

• Shares Issued in transaction: ~66 million
• It is contemplated that in connection with the Reverse Acquisition and simultaneous with the Closing, ActiveWorlds shall conduct a private placement to accredited investors of 10,041,687 shares of ActiveWorlds Common Stock and 5,020,844 five year warrants with an exercise price of $0.498 per share for a total price of $5,000,000
• Estimated Fully Diluted Outstanding Shares: ~90 million

Wuhan Kingold Jewelry Co., Ltd. Information:

• China`s leading manufacturer of 24K gold jewelry sold by weight.
• Nine months ending September 30, 2009 Kingold had revenues of $192,036,951 versus 57,184,660 in 2008
• Nine months ending September 30, 2009 $5,755,918  versus $3,825,753 in 2008

Source: SEC Form 8K (October 5, 2009)