International Building Technologies Group, Inc. Signed a LOI to Enter into a Merger with a China Petroleum Storage Facilities...
June 02 2010 - 9:00AM
Business Wire
International Building Technologies Group, Inc. (OTCBB:INBG)
announced today that it has signed Letter of Intent to merge with
FHH Sino New Energies Co., Ltd., a Chinese company (“FHH Sino”)
located in Weihai, Shandong Province of China. FHH Sino is a
petroleum storage company that offers petroleum storage tanks and
facilities for rental to the petroleum importer/exporter companies
in China. FHH Sino has made a good faith deposit of USD 230,000
with INBG to execute the signed Letter of Intent.
According to recent appraisal prepared by an accounting firm in
accordance with China accounting standards, FHH Sino has net assets
worth RMB 370 million (approx. USD 54 million) and will generate
annual revenues of RMB 100 million (approx. USD 14 million) after
its completion of construction of Phase I and execution of signed
rental contracts business in early 2011.
Stated Kenneth Yeung, CEO of INBG, “INBG intends to merge with
FHH Sino by exchanging INBG’s common stock with FHH Sino’s holding
or subsidiary company. This merger will give INBG the opportunity
to switch its nature of business into the energy sector, the
ability to generate revenue and profit once the FHH Sino commences
its operation in early 2011, thus benefits our shareholders in the
near future. FHH Sino is currently in construction of its Phase I
with petroleum storage capacity of 320,000 m3 (or approx.
11,300,000 cubic feet) and has completed all the foundation and
infrastructure for its 8 storage tanks. This infrastructure
includes the supporting facilities and pipeline connecting to the
harbor, which is just 600 meters away from the storage facilities.
Strategically, this merger will strongly support INBG’s ability to
connect with the energy market, the potential investors and
strategic partners who are interested in participating to the
energy sector in the most booming economic of the world, China, and
throughout the world .”
About FFH Sino: FHH Sino New Energies Co., Ltd. is a petroleum
storage company located in Weihai, a coastal city in Shandong
Province of China. The company provides petroleum storage tanks for
rental to petroleum companies such as Sinochem and Sino-Petro, as
well as being engaged in the business of local fuel oil
distribution. It has its approved Phase II planned with the
additional storage tanks of 450,000 m3. FHH Sino will be one of the
key players in the fuel storage facilities companies for the
northern coastal cities of China after the completion of both
Phases.
An 8-K along with a copy of the signed and executed LOI
specifying all the terms and conditions of the transaction will be
filed with the SEC shortly.
This news release may include forward-looking statements within
the meaning of section 27A of the United States Securities Act of
1933, as amended, and section 21E of the United States Securities
and Exchange Act of 1934, as amended, with respect to achieving
corporate objectives, developing additional project interests, the
company’s analysis of opportunities in the acquisition and
development of various project interests and certain other matters.
These statements are made under the “Safe Harbor” provisions of the
United States Private Securities Litigation Reform Act of 1995 and
involve risks and uncertainties which could cause actual results to
differ materially from those in the forward-looking statements
contained herein.