Hong Kong, SAR PR of China, 08 July, 2016 (pta010/08.07.2016/11:50) - Private placement raising approximately 19 million Euro cash completed to increase working capital
Euro Asia Premier Real Estate Company Limited (JT9; ISIN: VGG3223A1057) is pleased to announce that it has completed the acquisition of Yanxi Industrial Shanghai Company Ltd for a consideration of 1.26 million Euro Asia shares, as announced on 02 June 2016. The acquisition is based on Yanxi's audited net book value of approx. 63.3 million RMB or 8.64 million Euro, as of 31 March, 2016. The consideration equates a valuation of approx. 6.85 Euro per share of Euro Asia. The transaction was completed on 08 July, 2016.
Furthermore, Euro Asia is also pleased to announce a successful placement of 2.8 million common shares of the Company at a price of approx. 6.75 Euro per share. This private placement is completed as at 08 July, 2016. The total cash raised from the private placement is 163,170,163 HKD or approximately 19 million Euro. The funds are intended to be redeployed in Yanxi for its operation.
Shares for the acquisition consideration and capital increase were taken from the treasury shares the company holds since the cancellation of 7 million shares owned by former Chairman, Mr. Sun XiYi, in September 2014. Including the 4,075,340 re-issued shares, the number of shares outstanding will be 8,075,340, subject to the audit of Euro Asia's audit firm Mazars CPA, LLP.
Yanxi is a trading company which provides an efficient supply chain, dealing with major metal depositary agencies, financial institutions and large PRC industrial companies. It deals with both sourcing and supplying airplane parts, base metals and other chemical as well as industrial products. It is able to source at more efficient costs and delivery on a very cost competitive level.
For the year which ended 31 December, 2015, Yanxi as a private company, reported an audited revenue in excess of 2.8 billion RMB (approx. 380 million Euro) with a pre-adjusted and non normalized net income of 1.5 million RMB (approx. 0.20 Mio. Euro).
Daniel Zheng, CFO of Euro Asia says, "We expect Yanxi will exceed the 380 million Euro revenue achieved in 2015 due to our increase in working capital for deployment into Yanxi. Yanxi will contribute significantly to the Company. We plan to publish a detailed strategic update as well as a series of face to face meetings in Germany with institutional and potential investors in July, 2016 to communicate the re-launch of our business model."
Audited financial statements for the years ending 31 December 2014, 2015, and 6 months ending 30 June, 2016 is expected to be published by the end of July 2016.
Bloomberg FX tables June 30, 2016 Euro to HKD 8.5863
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About Euro Asia
Euro Asia is a BVI registered company, active in demand driven development of real estate projects in the People's Republic of China. The Company operates locally through it's subsidiary. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow its position in the Shandong Province prior to moving into other regions. For more information, please visit www.eu-asia.net