http://biz.yahoo.com/prnews/070330/laf032.html?.v=90SAN DIEGO, March 30 /PRNewswire-FirstCall/ -- Axia Group, Inc. (OTC: AXGJ - News) released today additional information on the proposed sale of its subsidiary, International Building Technologies, Inc. (IBT) to a third party. More information on this transaction can be found on the company web site,
www.axiagroup.info.ADVERTISEMENT
Stated Jeffrey Flannery, CEO of Axia, "Over the past year we have spent considerable time developing relationships in China and Central America, two key areas that we identified for the potential use of our building technology. While we met with great success and interest from qualified parties in these regions, we also realized that the cost of expanding our efforts was greater than Axia could bear on its own. Fortunately, we have identified a potential partner that can provide the resources necessary for this expansion while allowing Axia to benefit from its previous efforts.
"Last week, we announced the plan to sell IBT, a subsidiary of Axia. The Parties have agreed to basic terms which include a cash payment to Axia in the amount of $1 million over five years, stock in the Purchaser's company, which is a trading company on the OTC Bulletin Board, royalties on sales in China for a period of three years, as well as help and support to bolster our efforts in Sri Lanka and surrounding areas. At this time, until further due diligence is completed and the Final Agreement is executed, we are not at liberty to disclose the Purchasing Party or additional details, although I can say that the Purchaser is comprised of individuals who have extensive experience with the panel technology and the company will be dedicated to marketing the panel technology system.
"How does this deal affect and benefit Axia and its shareholders? We plan to use some of the cash from the deal to increase our capabilities in Sri Lanka, where tremendous opportunities await. This includes potentially building a panel production plant in Sri Lanka, as well as bolstering our management team in the region. Should we be able to sufficiently increase our business and production in the region, I personally would like to see some of the cash from this transaction and collected royalties be offered to shareholders as dividends. However, this needs to be decided at a later time.
"We will dividend to shareholders the stock Axia receives from the Purchasing company. The amount of stock that we are receiving is still being negotiated, but should be equivalent to a significant portion of the Purchases' issued and outstanding shares. Again more details will be made available shortly.
"The Purchaser has also agreed to help Axia establish its own panel production plant in Sri Lanka, which would be of great benefit to Axia. With our own plant in the region, our cost of material would be significantly lessened making our company more competitive and our projects potentially more profitable. We would also seek to export panels to other countries in the region which are beginning to adopt the panel method for construction.
"Overall, I believe this is a good, beneficial deal for Axia and for its shareholders. It allows us to focus on a key region that wants us to expand our capabilities. It gives us much needed resources to grow. Finally, this transaction gives Axia shareholders direct participation in the Purchaser's efforts though stock and potentially through cash dividends as well. I will have complete disclosure on this transaction as soon as we complete the Final Agreement."
Thread abonnieren
ETF-Sparplan