A capital pool company Giga Capital Corporation signed a letter of intent dated November 28, 2011 with Chang Li Holdings Ltd., which is incorporated in the British Virgin Islands and has an office in Hong Kong. The agreement concerns the proposed acquisition of all the issued and outstanding shares of Tongli Enterprises Development (HK) Company Ltd., the wholly-owned subsidiary of the BVI company, incorporated under the laws of Hong Kong.
Tongli is involved in the business of the market development and sales of neodymium iron boron (NdFeB) rare earth permanent magnetic materials and devices, which are necessary for computers, mobile phones, most audio and video equipment, generators and medical equipment.
It is provided by the LOI that the currently issued and outstanding 7,660,000 Common Shares of Giga Capital Corporation will be consolidated on a 5 for 1 basis. The consolidation was approved by the shareholders of the corporation.
