ROSLYN, N.Y., April 8, 2020 /PRNewswire/ -- Sino-Global
Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global",
the "Company" or "we"), a non-asset based
global shipping and freight logistic integrated solution provider,
today announced the signing of a Share Purchase Agreement (the
"Agreement") with Mr. Kelin
Wu, the 88.5% shareholder of Mandarine Ocean Ltd,
("Mandarine Ocean" or
"MO"), a Shanghai,
China-based shipping company
registered in the Marshall Islands.
Under the Agreement, Sino-Global will acquire a 75% majority
position in Mandarine Ocean for up
to $3.75 million, with a combination
of cash and stock dependent on MO's financial performance,
particularly its pre-tax net profit (annual pre-tax net profit over
the next two-years). Over the past three years, MO has an average
annual revenue of approximately US$38
million. With the integration of MO's business, there will
be a significant increase in SINO's revenue beginning in the
current fiscal 2020 fourth quarter and into fiscal 2021. The
details of the transaction in detail will be available in the
Company's filing with the Security and Exchange Commission on Form
8-K.
Mandarine Ocean was founded in
2013 and is a shipping company providing worldwide ocean freight
service. Mandarine Ocean currently
has long-term contracts to operate 14 bulk carriers (with six of
those vessels being owned by Mr. Wu), with the majority being
Handysize and Handymax size with DWT range from 20,000mt to 50,000mt.
Business Combination Rationale - Management
Commentary
MO's current downstream business operates in the middle portion
of the ocean logistic supply chain, which includes shipping agency
services, ship management and crew management. These services
are all outsourced to other suppliers, each of these are within
Sino-Global's business scope. With the completion of acquisition,
MO can utilize its relationship with (and ownership by) Sino-Global
to consolidate these services at a lower overall cost and provides
enhanced profit potential. Ultimately, the Company believes it will
increase incremental shipping agency revenues by approximately
$7 million based on historical
volumes.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated,
"This is a milestone agreement for our Company, which allows our
business to expand when we have begun to see an increased level of
economic activity now that challenges and delays created by the
Coronavirus have begun to wane in China. Trucking operations
have resumed in China, which is
leading to increased export cargo arriving at ports and ships are
needed to handle the backlog of containers. We see this as an
opportunity for Sino-Global and Mandarine
Ocean to create a 'win-win'
scenario where we can utilize our relationships and expertise to
grow their operations at an accelerated rate."
About Sino-Global Shipping America, Ltd.
Founded in the United States in
2001, Sino-Global Shipping America, Ltd. is a company engaged in
shipping, chartering, logistics and related services. Headquartered
in New York, Sino-Global has
offices in Los Angeles, Mainland
China, Australia, Canada and Hong
Kong. The Company's current service offerings
consist of shipping agency services, shipping and chartering
services, inland transportation management services and ship
management services. Additional information about Sino-Global can
be found on the Company's corporate website at
www.sino-global.net. The Company routinely posts important
information on its website.
Forward Looking Statements
No statement made in this press release should be interpreted as
an offer to purchase any security. Such an offer can only be made
in accordance with the Securities Act of 1933, as amended, and
applicable state securities laws. Any statements contained in this
release that relate to future plans, events or performance are
forward-looking statements that involve risks and uncertainties as
identified in Sino-Global's filings with the Securities and
Exchange Commission. Actual results, events or performance may
differ materially. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
the date hereof. Sino-Global undertakes no obligation to publicly
release the results of any revisions to these forward-looking
statements that may be made to reflect the events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
Contact Information
The Equity Group Inc.
Adam Prior
Senior Vice-President
(212)-836-9606 / aprior@equityny.com
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SOURCE Sino-Global Shipping America, Ltd.