CanAsia Financial Inc. announced that it has entered into an arm's length agreement in principle dated May 12, 2009 with the British Virgin Islands corporation Classet Holdings Inc., with the purpose to purchase all of the issued and outstanding securities of its wholly owned subsidiary Classet Co. Ltd, which is located in Seoul, South Korea, and was incorporated under the laws of South Korea in 2006.
Under the terms of the Agreement, the Canadian company has agreed to acquire Classet Co. from the BVI company for consideration of a CDN$25,000 deposit, 10 mln common shares of the company at a deemed price of $0.10 per share, 23 million redeemable convertible preferred shares of the company, and a redeemable debenture with the principal amount of $450,000 for the term of five years at an interest rate equal to 4% per annum.
Each preferred share into a common share of the company at any time after November 12, 2010, at a price per common share of CDN$0.10, subject to the company meeting the Exchange's public distribution requirements. Each Preferred Share is also redeemable by the company at a price of CDN$0.10 for a period of five years from the closing date.
In accordance with the TSX Venture Exchange, the transaction is intended to be the company's qualifying transaction. Closing of the transaction is expected to take place on or before November 12, 2009.
The South Korean company engages in design, manufacturing and distributing mobile broadcast receivers (digital) all-in-one CPU boards, digital mobile TVs, portable media players, high-definition set-top boxes, personal navigation assistants, multimedia codecs, USB applications and middleware. Company's sales are primarily in Asia including Korea, Japan, China and Taiwan, however, Classet Co. has appointed representatives and distributors worldwide.
