Monday, April 28, 2008

BVI-controlled YBBS corporation signs Share Purchase Agreement for germanium production in China

Sparton Resources Inc. announced on April 17, 2008 that it has signed the final Share Purchase Agreement to acquire 85% share interest in the private Yunnan Province PRC based coal and germanium producer - Hua Jun Coal Industry Co.Ltd. (HJ). The Chinese company is also the producer of locally marketed thermal coal from one of its three operating coal mines in the area.

The agreement has been signed between the two private owners of Hua Jun Coal Industry, and Yunnan Blue Bay Semiconductor Technology Co. Ltd. (YBBS), China-based company which is 100% owned by Sparton Resources wholly owned subsidiary Sparton Energy Inc., registered in the British Virgin Islands.

As a result of the merger, the original owners of HJ (private individuals) will retain 8% and 7% share ownerships in HJ respectively. Once 60% of the full agreed purchase price for the Hua Jun in the amount of 22 million RMB (approximately $US1.9 million) has been paid, BVI-owned YBBS corporation will take full control of the operations. It is anticipated that the BVI-controlled company will be fully in charge of HJ by mid August 2008.

Since the date when Sparton Resources signed the initial share acquisition agreement, the price for germanium metal increased from about $US 1250 per kg to over $US 1400 per kg, and the demand continues to grow. Sparton now is becoming a profitable producer in the rapidly developing germanium market.

Friday, April 25, 2008

Iomega terminates agreement with BVI- and Cayman-based ExcelStor Entities

Iomega Corporation, a worldwide leader in innovative storage and network security solutions for small and mid-sized businesses, in December 2007 had entered into a share purchase agreement with Cayman Islands-based ExcelStor Great Wall Technology Limited and ExcelStor Holdings Limited, Chinese companies Shenzhen ExcelStor Technology Limited and Great Wall Technology Company Limited, and British Virgin Islands-based ExcelStor Holdings Limited. During this period of time, Iomega and the selling stockholders were preparing the required filings for obtaining the necessary regulatory and stockholder approvals for the business combination.

However, on April 8, 2008, the board of directors of Iomega terminated the Purchase Agreement with Cayman Islands-, BVI- and China-based companies. In accordance with the terms of the Purchase Agreement, as the Agreement between Iomega, ExcelStor, and the Selling Shareholders is no longer in effect, Iomega has paid the Selling Shareholders a termination fee of US$7.5 million.

Having terminated the Purchase Agreement with the above companies, Iomega entered into an agreement and plan of merger with EMC Corporation. Iomega announced that it has received an unsolicited non-binding indication of interest from EMC Corporation in March, when EMC offered to acquire the outstanding common stock of the company for $3.25 per share, assuming a total of approximately 54.8 mln outstanding shares. Now EMC Corporation will commence a cash tender offer to share purchase at a price of $3.85 in cash, without any interest.

Tuesday, April 22, 2008

BVI-registered Asia Automotive Acquisition Corporation reports shareholders approval of merger with the company and Hunan Tongxin Enterprise Co., Ltd.

Last week, BVI-registered Asia Automotive Acquisition Corporation (AAAC) announced that its shareholders approved the merger with Hunan Tongxin Enterprise Co., Ltd. The BVI blank check company signed Equity Acquisition Agreement with the Chinese Tongxin Enterprise Co., Ltd. in July, 2007. Pursuant to this agreement, both companies are to merge into a new BVI-domiciled entity, and its name is to be changed to Tongxin International, Ltd. (TXI).

The approval of the shareholders of the BVI company was received at a meeting that took place at AAAC's corporate headquarters; approximately 85% of the shareholders voted for Proposal 1, and about 86% voted for Proposal 2. As the result of the transaction, each share of AAAC will be automatically converted into one share of TXI, and each outstanding warrant of the BVI company will be assumed by TXI with the same terms.

At the same time as the merger, BVI-based TXI will acquire 100% of the issued and outstanding common stock of Hunan Tongxin. The company has applied for listing on the NASDAQ Stock Market under the proposed symbols, TXIC, and TXICW, TXICU.

Hunan Tongxin CEO Mr. Duanxiang Zhang stated in his comments that, as a result of the merger and anticipated NASDAQ listing, the company “will be a much stronger participant in the Chinese automotive market.” Also, in his words, the merger will help the company to expand on the international automotive markets, thus enhancing the long term value of TXI for its shareholders.

Tuesday, April 8, 2008

Transmeridian Exploration terminates Merger Agreement with its BVI subsidiary

On April 1, Transmeridian Exploration Inc. announced the termination of company's merger agreement with British Virgin Islands-registered Trans Meridian International Inc. (TMI), formed by the company's Chairman and CEO Lorrie Olivier. The company entered into a definitive merger agreement with TMI (BVI) pursuant to which the BVI company had to make a tender offer of $3 per share, to purchase all of company's outstanding shares of common stock, in a deal valued at $825 million. In order to complete the proposed financing arrangements, detailed information was required to be provided by Transmeridian Exploration Inc. until March 21, 2008.

However, the deal began to fall apart in February when BVI corporation said it is unable to meet the financing deadline for its offer. Transmeridian Exploration is not required to pay any termination fee.

Now, termination of the definitive agreement with the BVI-based TMI may result in a downward adjustment to the conversion price of Transmeridian's junior preferred stock from the current conversion price of $1.90, to a revised conversion price equal to the forward 15-day volume weighted average price of Transmeridian's common stock, commencing on the March 31, 2008 merger agreement termination date.

Transmeridian will continue to seek proposals on the acquisition of the company from other interested parties.