CD International Enterprises Sells 51% Stake in Shanghai Lang Chemical Subsidiary for $1.2 Million as Part of Management's St...
08 Octubre 2012 - 8:07AM
Marketwired
CD International Enterprises, Inc. ("CD International") (OTCQB:
CDII), a U.S. based company that produces, sources, and distributes
industrial commodities in China and the Americas and provides
business and financial corporate consulting services, announced
today the sale of our 51% interest in Shanghai Lang Chemical Co.,
Ltd., a PRC company ("Lang Chemical") for $1.2 million as part of
management's strategic plan to focus our operations in China on
magnesium production and distribution.
CD International acquired its stake in Lang Chemical in 2006 for
approximately $700,000. Under the terms of the September 28, 2012
Equity Transfer Agreement, Black Stone Chemical Limited purchased
2% of CD International's interest in Lang Chemical and Mr. Jingdong
Chen, CEO of Lang Chemical, and his wife Ms. Qian Zhu purchased the
remaining 49% interest for an aggregate purchase price of
$1,221,532. Of this amount $600,000 was tendered at closing and the
balance is payable over one year at an annual interest rate of 6%.
Management intends to focus CD International's industrial efforts
in China solely on the production and distribution of pure
magnesium through its current magnesium production facilities
within our magnesium segment.
Commenting on the sale, Dr. James Wang, Chairman and CEO of CD
International, stated, "As we enter fiscal 2013 management is
focused on executing our strategic plan of geographic
diversification and clear definition of our business segments. We
believe that by clearly defining our magnesium operations as our
China based business, commodities distribution as our business in
South America, and our consulting services in the U.S., we can have
more flexibility to maximize the value of our company. We are
dedicated to building each of our segments for future growth and
position our businesses to provide the greatest possible return for
our company and its shareholders."
We anticipate this disposition will result in a loss of
approximately $1 million in the fourth quarter of fiscal 2012 based
on the current carrying value of our 51% equity interest in Lang
Chemical on our balance sheet.
About CD International Enterprises, Inc.
CD International Enterprises, Inc. (OTCQB: CDII), is a U.S.
based company that produces, sources, and distributes industrial
commodities in China and the Americas and provides business and
financial corporate consulting services. Headquartered in Deerfield
Beach, Florida with corporate offices in Shanghai, CD
International's unique infrastructure provides a platform to expand
business opportunities globally while effectively and efficiently
accessing the U.S. capital markets. For more information about CD
International, please visit http://www.cdii.net.
DISCLOSURE NOTICE:
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, CD International
Enterprises, Inc., is hereby providing cautionary statements
identifying important factors that could cause our actual results
to differ materially from those projected in forward-looking
statements (as defined in such act). Any statements that are not
historical facts and that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, indicated through the
use of words or phrases such as "will likely result," "are expected
to," "will continue," "is anticipated," "estimated," "intends,"
"plans," "believes" and "projects") may be forward-looking and may
involve estimates and uncertainties which could cause actual
results to differ materially from those expressed in the
forward-looking statements. These statements include, but are not
limited to, our expectations regarding the effect on the value of
our company and possible shareholder return as a result of the sale
of our interest in Lang Chemical and our geographic diversification
plans.
We caution that the factors described herein could cause actual
results to differ materially from those expressed in any
forward-looking statements we make and that investors should not
place undue reliance on any such forward-looking statements.
Further, any forward-looking statement speaks only as of the date
on which such statement is made, and we undertake no obligation to
update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of anticipated or unanticipated events or
circumstances. New factors emerge from time to time, and it is not
possible for us to predict all of such factors. Further, we cannot
assess the impact of each such factor on our results of operations
or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in
any forward-looking statements. This press release is qualified in
its entirety by the cautionary statements and risk factor
disclosure contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended September 30, 2011.
Contact: Contact Information: For the Company: CD International
Enterprises, Inc. Richard Galterio or Lillian Wong Investor
Relations Phone: 1-877-244-6257 Email: richard.galterio@cdii.net
lillian.wong@cdii.net
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