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Geo Genesis signs consultancy agreement with China’s Yongle

Geo Genesis Group, an advisory and investment company focussed on China and other emerging markets, has signed an agreement with Zhejiang Yongle Alloy Wheel, a Chinese aluminium alloy wheel manufacturer, to provide consultancy services to structure a stock exchange listing and associated financing of up to USD10m. 

The agreement follows the recently announced deal with Flourish Media, a Chinese based publisher of magazines, also to provide a consultancy service to structure a listing and fundraising.
 
Yongle is a large-scale modern enterprise with total investment value of USD50m. Products include machined wheels, chromed wheels, polished wheels and full-paint wheels, with various specifications from 12 inches to 26 inches. Eighty per cent of the products are exported to the US, Germany, France, Japan and other countries all over the world. The funds raised will primarily be used for the domestic and international development of the business.
 
Under the terms of the agreement, Geo Genesis will organise a special purpose vehicle that will merge with or become Yongle International Holding in order to gain Yongle a listing on the OTC-BB market in the US. Alternatively, Geo Genesis shall help find the appropriate regulated entity to list directly Yongle on the OTC-BB or in any other capital markets suitable for the purpose of raising funds for Yongle in the form of equity, warrants, options and or debt, including mixed instruments. The exact composition is to be mutually agreed upon by the parties. 

In the instance that listing is achieved prior to a fundraising, or as a condition in preparation of a company fund raise, Geo Genesis will receive a minimum of seven per cent of Yongle’s equity prior to dilution from fund raise.
 
Effective immediately upon listing and in receipt of proceeds of at least USD2m in investment, Yongle will start paying Geo Genesis USD7,000 or the Renminbi equivalent a month for a minimum period of 12 months, as a monthly retainer for ongoing advisory services provided by Geo Genesis to Yongle.
 
Geo Genesis chief executive officer Roger Bendelac says: “This is a further exciting deal which we believe has the potential to considerably affect our financial performance. Yongle is an established company with an expanding client base and we feel that a listing on an international market will greatly enhance its visibility and assist in its aggressive growth strategy.” 

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