Last week Southern Sauce Company, Inc. announced the acquisition of British Virgin Islands corporation Shen Kun International Limited. The agreement was signed on June 9, 2008. The BVI company, through China-based Shengkai (Tianjin) Ceramic Valves Co., Ltd., has a series of contracts with Tianjin Shengkai Industrial Technology Development Co., Ltd., which gives it full control over Shengkai's business, personnel and finances.
The Chinese company Shengkai is engaged in the design, manufacturing and sales of ceramic valves, high-tech ceramic materials, technical consultation and services, and import and export of ceramic valves and related technologies. The company sells its products in China, North America and the Asia-Pacific region. Over the past two years, company's business has shown significant growth with net revenues increasing to $23,124,748 for the fiscal year ended June 30, 2007, from $13,677,946 for the fiscal year ended June 30, 2006. Net income was $6,571,802 for the fiscal year ended June 30, 2007, an increase from $4,173,926 for the fiscal year ended June 30, 2006.
On June 11, 2008 the company also closed private placement through the sale of units, consisting of shares of its Series A Convertible Preferred Stock and attached five-year warrants, at a purchase price of $2.5357 per Unit, for gross proceeds of $15 million.
