WorldTeq Group International, Inc. Updates Plan of Exchange to Acquire Harbin Yinhai Technology Development Company Ltd.
16 Fevereiro 2005 - 1:50PM
PR Newswire (US)
WorldTeq Group International, Inc. Updates Plan of Exchange to
Acquire Harbin Yinhai Technology Development Company Ltd.
ROCKVILLE, Md., Feb. 16 /PRNewswire-FirstCall/ -- WorldTeq Group
International (OTC:WTEQ) (BULLETIN BOARD: WTEQ) announced recently
in a form 8-K filed with the SEC that it has signed a plan of
exchange to acquire Harbin Yinhai Technology Development Company
Ltd. Pursuant to and subject to the closing of the Agreement
(including the satisfaction of certain conditions prior to closing)
and the transactions therein, the shareholders of Yinhai plan to
exchange all of their shares of registered capital of Yinhai for
12,211,857 shares of common stock of WorldTeq, or approximately 90%
of WorldTeq's then outstanding shares of common stock. In this
event and upon completion of the exchange, the registered capital
of Yinhai will be transferred to WorldTeq Group International, and
Yinhai will become a wholly owned subsidiary of WorldTeq Group
International. The Agreement contemplates that the exchange
transaction will not immediately be consummated, but will close
within three days after the satisfaction or waiver of the
conditions precedent set forth in the Agreement. The closing of the
planned transaction is subject to completion of various additional
acts on the part of each of the parties. These include, but are not
limited to, completion of satisfactory negotiations and due
diligence, customary closing conditions for a transaction of this
type, as well as a condition that WorldTeq will have consummated a
30:1 reverse stock split prior to closing in compliance with the
provisions of the corporate law of Nevada, that WorldTeq will have
no material liabilities at closing, and Yinhai's delivery of
audited financial statements satisfactory to WorldTeq (for the year
ended December 31, 2004). Jeff Lieberman, CEO of WorldTeq Group
stated: "The most exciting feature of this transaction is that the
merger between Yinhai and WorldTeq Group International does not
include WorldTeq Corporation's current and future business. Yinhai
is merging with WorldTeq Group International, the parent company,
while WorldTeq Corporation is spinning off prior to this
transaction and will be transferred to another public company. In
addition to their shares of WorldTeq Group International, all
shareholders of WorldTeq Group International, Inc. will receive the
same numbers shares in the new WorldTeq Corporation that they had
in WorldTeq Group International. If the Company's plans can be
successfully implemented and subject to further negotiations, the
planned merger transaction will function similar to a paid dividend
to the WorldTeq Group International shareholders because, whether
they hold or sell their shares in Yinhai, they will still have
their shares in WorldTeq Corporation. Mr. Lieberman further stated
that he believes that Yinhai offers good growth prospects if Yinhai
is able to implement its business plan. We are hopeful that the
merger will close during the first quarter 2005. Additionally,
management is discussing the future strategy of the new WorldTeq
Corporation. If the transaction with Yinhai is completed, we are
deciding where to focus our efforts. One possibility is a second
merger with a company in the same industry that could take
advantage of our sizeable carry-loss forward." About Yinhai Based
on the discussions that management of WorldTeq has had with Yinhai
to date, WorldTeq believes that Yinhai is a commercial printing
company located in Harbin, People's Republic of China, that, among
other things, prints forms for use by banks in the Harbin area, and
it has approximately 200 employees. The recently completed audit
for Yinhai shows that the company had sales of $3,630,096 for 2004
compared to $2,284,991 for 2003. Gross Profit was $1,063,386 in
2004 versus $272,478 in 2003. Net profit was $566,834 in 2004
compared to $29,180 in 2003. Assets for Harbin totaled $3,949,095
in 2004 versus $2,299,245 in 2003. Liabilities were $328,435 for
2004 versus $356,530 during 2003. Cash position was $1,067,390 on
Dec. 31, 2004 versus $258,305 for 2003. About WorldTeq Group
International WorldTeq Group International offers a wide range of
telecommunications, merchandising and financial services with
related products via independent agents, associations, sales
organizations and affiliate marketing. THE STATEMENTS CONTAINED IN
THIS PRESS RELEASE THAT ARE NOT HISTORICAL FACTS ARE
"FORWARD-LOOKING STATEMENTS" (AS THAT TERM IS DEFINED IN THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995), THAT CAN BE
IDENTIFIED BY THE USE OF FORWARD-LOOKING WORDS SUCH AS "BELIEVES,"
"EXPECTS," "MAY," "WILL," OR "ANTICIPATES," OR THE NEGATIVE OF
THESE WORDS OR OTHER VARIATIONS OF THESE WORDS OR COMPARABLE WORDS
OR DISCUSSIONS OF THE PLANNED TRANSACTIONS BETWEEN WORLDTEQ, HARBIN
YINHAI, AND ASSOCIATED PERSONS AND ENTITIES. THE READER IS
CAUTIONED THAT THESE FORWARD-LOOKING STATEMENTS INVOLVE NUMEROUS
RISKS AND UNCERTAINTIES AND THEY ARE SUBJECT TO FUTURE UNKNOWN
EVENTS AND MATTERS THAT ARE BEYOND THE CONTROL OF THE COMPANY.
THESE INCLUDE, BUT ARE NOT LIMITED TO, THE STATEMENTS REGARDING THE
INFORMATION WORLDTEQ HAS RECEIVED REGARDING YINHAI, YINHAI'S SALES
AND PROFITS, AND FUTURE PROSPECTS TOGETHER WITH THE TERMS AND
ARRANGEMENTS OF THE PROPOSED TRANSACTION BETWEEN WORLDTEQ AND
YINHAI. NO ASSURANCES CAN BE GIVEN THAT SUCH PREDICTIONS OR
ANTICIPATED EVENTS WILL PROVE ACCURATE OR THAT THEY WILL BE
ACHIEVED. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY EITHER
BECAUSE ONE OR MORE PREDICTIONS PROVE TO BE ERRONEOUS OR BECAUSE OF
OTHER FACTORS AND VARIABLES BEYOND THE COMPANY'S CONTROL. THE
COMPANY'S MANAGEMENT HAS CONDUCTED NEGOTIATIONS WITH YINHAI TO
FURTHER THE PLANNED TRANSACTIONS BUT UNTIL THE ANTICIPATED
TRANSACTIONS ARE COMPLETED, THE RISKS ASSOCIATED WITH THESE
PROPOSED TRANSACTIONS WILL REMAIN AND SOME FACTORS THAT IMPACT
THESE RISKS WILL BE BEYOND THE COMPANY'S CONTROL. AS A RESULT,
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THE FUTURE RESULTS
INDICATED, EXPRESSED, OR IMPLIED IN SUCH FORWARD-LOOKING
STATEMENTS. Contact Information: WorldTeq Group International Inc.,
Jeff Lieberman, 888-263-7776, 413-513-1260 fax, DATASOURCE:
WorldTeq Group International Inc. CONTACT: Jeff Lieberman, WorldTeq
Group International Inc., +1-888-263-7776, +1-413-513-1260 fax,
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