BEIJING, Sept. 15 /PRNewswire-FirstCall/ -- MonArc Corporation http://www.monacorporation.com/ (Pink Sheets: MONA.PK) is pleased to announce that it has reached a preliminary agreement to acquire Hubei Chuguan Industry Co. Ltd. (Chuguan), as advised in previous press releases. MonArc executives had a successful meeting with Chuguan executives in China this past week to iron out the parameters of the acquisition.
MonArc has arranged for the incorporation of Yellowsea Management Inc., a Belize Company, to acquire Chuguan, with Chuguan ending up with 100% control of Yellowsea. In turn, Yellowsea will then be vended in to MonArc as an active operating subsidiary. This intermediate acquisition stage is a key component to bring Chuguan public in as short a time-frame as possible. MonArc believes that a 3-6 month time frame is a realistic objective to accomplish the acquisition.
MonArc will be putting in place a program that will see the Chuguan/Yellowsea ultimately listed on either the OTCBB and/or the Frankfurt Exchange, and include an Initial Public Offering on behalf of Chuguan. These plans include splitting off Chuguan to become either an OTCBB or Frankfurt listed company, at which time, an initial public offering is anticipated.
Additional news regarding this important development will be forthcoming based on further developments. A backgrounder regarding Chuguan's business model will also be posted in short order on the Company website at the earliest opportunity.
Shareholders can expect to receive additional stock dividends in the split-off company, and plans also call for issuing options or warrants to acquire additional stock in the new Chuguan company once it has been split-off from MONA.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.
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