Friday, November 28, 2008

BVI corporation's subsidiary acquires Californian eyewear manufacturer

Nasdaq registered FGX International, a subsidiary of British Virgin Islands-registered holding company FGX International Holdings Ltd., announced the purchase of privately held California eyewear manufacturer Dioptics Medical Products Inc. The company was acquired for $35 million in cash, and 952,380 FGX stock shares. FGX expects to save money by combining supply purchase and distribution functions for the two companies.

FGX designs and sells sunglasses, reading glasses and costume jewelry, while the purchased Californian company sells eyewear products for a number of business sectors, including the medical, mass market, sports and professional areas. The BVI-controlled corporation, which was reorganized from Femic Inc., a Providence manufacturer of costume jewelry, received initial public offering last October and now has the steady financial ground. This year the company looks forward to net sales of more than $255 mln, about 6% increase from the previous year, and 15% increase from 2006. FGX sells nearly 70 mln pairs of eyewear annually, under various brands.

Alec Taylor, CEO of FGX, commented that the acquisition of the company will add the new product line complementing the existing product portfolio of the company, accelerating the strategic growth initiatives and strengthening the competitive positions. In a September interview, he also said that he and other FGX executives will look to buy eyewear brands that fit into company's general strategy of offering lower-priced eyewear sold through retailers.

Steve Crellin, who had previously served as executive vice president of sales at FGX, now will be the president of the purchased company.

Monday, November 24, 2008

Everbright signs final agreement to Gottschalks acquisition

Gottschalks Inc., the regional retail chain headquartered in California, on November 21 announced the sign of a definitive agreement for an investment in the amount of up to $30 mln made by the British Virgin Islands-registered corporation Everbright Development Overseas Ltd., providing financial and logistical services for manufacturers and merchants involved in trade between the United States and China.

The deal between the BVI company and Gottschalks, for which the letter of intent was signed in September, includes the transfer to Gottschalks of all of the issued and outstanding capital stock, trademarks, patents and licenses of Everbright Asia Limited, and provides that the Californian retail chain will set up a new wholesale business, from which it will get all profits.

The $30 mln investment by the BVI-registered Everbright is divided into a $15 mln acquisition of newly issued shares of Gottschalks common stock, and a capital call of up to $15 mln “in the form of a capital contribution or loan”, which Everbright may use to increase the retailer's credit facility, to purchase additional shares, and warrants for even more shares. According to the original letter of intent, Everbright had planned to buy $10 mln worth of the new stock, but in the final agreement this amount has been upped.

The additional business opportunities and enhancements under the terms of the definitive agreement will include direct sourcing program established by Gottschalks and Everbright, with a network of international manufacturers. Also, both companies will work together to establish consignment arrangements for specific merchandise categories to be sold in selected Gottschalks stores. Upon completion of the transaction with the BVI company, Gottschalks expects to test the consignment arrangement in select locations starting from the late spring 2009.

Friday, November 7, 2008

China-based Lihua International completes acquisition of BVI company and $15 million private financing

The Chinese company Lihua International, Inc. has announced the completion of a share exchange transaction with Magnify Wealth Enterprise Limited. Under the terms of this transaction Lihua issued 14,025,000 shares of its common stock to Magnify Wealth in exchange for 100% equity interests of Ally Profit Investments Limited - British Virgin islands company having two subsidiaries operating in the PRC.

One of these subsidiaries, Danyang Lihua Electron Co., Ltd., is the leading value-added manufacturer of bimetallic composite conductor wire, located in China. The company sells to distributors in the wire and cable industries and to manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Another Chinese subsidiary is called Jiangsu Lihua Copper Industry Co., Ltd., will utilize refined copper to manufacture and sell low content oxygen copper cable and copper magnet wire to the existing customers of the first subsidiary, and is planning to begin operations prior to the end of 2008.

Prior to the share exchange, Lihua International was a public reporting shell company with no operations, formed to pursue a business combination through the acquisition of, or merger with, an operating business. Company's common stock is not currently trading, but the company is planning to apply for listing on a national securities exchange. As a result of the share exchange, Lihua International now conducts business in the PRC operating two subsidiaries.

Immediately after the share exchange, Lihua International consummated a private placement of 6,818,182 shares of series A convertible preferred stock and warrants to purchase up to an aggregate of 1,500,000 shares of common stock to accredited investors for gross proceeds of $15 million.

The BVI-registered Ally Profit together with its subsidiaries had consolidated net sales of approximately $24.8 million and consolidated net income of approximately $5.8 million for the six months ended June 30, 2008. For the year ended December 31, 2007, Ally Profit and its subsidiaries had consolidated net sales of approximately $32.7 million, and consolidated net income of approximately $7.7 million. Compared to the 12 months ended December 31, 2006, Ally Profit and its subsidiaries experienced revenue growth of 108% and net income growth of over 71%. If comparing the six month period ended June 30, 2007 to the same period of 2008, the BVI company and its subsidiaries experienced net income growth of over 72%.