CanAsia Financial Inc. entered in an arm's length agreement dated May 1, 2010 with HK resident Mr. Jacky Chak-Sun Cheng and British Virgin Islands-registered private company Mondeo Development Group Ltd. Under the terms of this agreement, CanAsia will acquire through a series of transactions all of the issued and outstanding securities of the BVI company, and, indirectly, all the securities of Mondeo's subsidiaries.
Currently Mondeo has 360 common shares held by Mr. Cheng. The BVI company owns all of the issued and outstanding securities of Pacific Optical Technologies Ltd. and Pacific Optical owns all of the issued and outstanding securities of Pacific Optical Technologies Ltd. It is expected that prior to entering into the definitive agreement governing the transaction Mr. Cheng will sell 70 Mondeo shares to various arm's length investors, for cash consideration of $947,917. Each investor will also enter into agreement with CanAsia whereby they agree to sell their shares in BVI company to CanAsia.
On May 21, pursuant to the agreement, Mr. Cheng invested HK$8 million (approximately CDN$1 million) in consideration for a 38.4% equity stake in Pacific Shenzhen.
The Transaction will be Company's "Qualifying Transaction" in accordance with the policies of the TSX Venture Exchange. Completion of the Transaction is expected to take place on or before July 31, 2010. After closing, CanAsia will be the "Resulting Issuer" operating in the technology sector and the operations of Mondeo will be the Company's main business.
