Geo Genesis Group, an advisory and investment company focused on China and other emerging markets, has signed binding letters of intent with two Chinese based companies, Yawee Digital T
Geo Genesis Group, an advisory and investment company focused on China and other emerging markets, has signed binding letters of intent with two Chinese based companies, Yawee Digital Technology and Huashiji Science and Technology Development Group.
In return for a five per cent equity stake in each enterprise, Geo Genesis will assist Yawee and Huashiji to reorganise their corporate structures with the eventual aim of raising capital and bringing both companies to listings on overseas stock exchanges.
Beyond this initial mandate, Geo Genesis will remain on a retainer with both Yawee and Huashiji to provide ongoing advisory services.
Geo Genesis, which is registered in the Marshall Islands and listed on PLUS in April 2008, acts as an investment vehicle and strategic adviser to companies based or operating in emerging markets, primarily focused in China, seeking to raise capital in the EU, Hong Kong and the US.
Yawee is a Beijing based service provider specialising in 3D visualisations, animations, high-end special effects and graphic design, undertaking 3D modelling for national and international clients, with particular expertise within the architectural and interior design fields. Its services range from simple models for computer games to complex organic architectural models.
Geo Genesis will assist Yawee in incorporating an international holding company, restructuring its board of directors and preparing it for an initial private equity placing aimed at raising funds to increase the scope of its operations and leading to a subsequent public listing.
Under the terms of the agreement, which will be subject to extension after a period of 90 days and in addition to receiving a five per cent equity stake in Yawee, Geo Genesis will also provide Yawee with ongoing support including the implementation of appropriate marketing strategies for its services worldwide and the establishment of global representative offices.
Huashiji is a Qingdao-based company with three operating subsidiaries engaged in the design, production and export of precision moulds and casings for IT and telecommunication products such as mobile phones, computer monitors and headsets. With a workforce of more than 200, its international blue-chip client list includes LG Electronics, Hisense and Apple.
Under the agreement, Geo Genesis, upon completion of commercial due diligence, will assist Huashiji with the identification of shell opportunities for a potential public listing on the US OTC Bulletin Board market. Geo Genesis has also agreed to facilitate the reorganisation of Huashiji’s current shareholding structure and to arrange, on a best effort basis, a USD3.1m fundraising through the issue of 30 per cent of shares in the new shell entity. In addition to the five per cent equity stake, Geo Genesis will be retained on a monthly basis by Huashiji in an advisory capacity for a period of 36 months.
Geo Genesis chief executive officer Roger Bendelac says: ‘These letters of intent highlight our ability to operate successfully in a difficult economic climate and will further build our reputation in the emerging markets. Our extensive global network of contacts puts Geo Genesis in an ideal position to provide growth companies in these markets with greater exposure to overseas investors, as demonstrated by our recent introduction of Changda International to the OTC Bulletin Board. Although growth in Asian markets has slowed somewhat, we believe that they will recover more quickly than those in Europe and the US. We therefore continue to identify opportunities for investment in China and beyond and work towards introducing these companies to wider global markets.’