Yantai Dahua Holding Company (OTC Bulletin Board: YDHCF) today announced that it has completed a reverse merger with China Agro-Technology, Ltd. The name of the listed company has been changed to China Agro-Technology Holdings Ltd. and expects to receive a new stock symbol in the coming days.
Yantai Dahua issued 288 million shares of common stock in exchange for all of the issued and outstanding shares of China Agro-Technology, Ltd. . As a result of the transaction, CAT became a wholly-owned subsidiary of Yantai Dahua.
CAT, an agro-biotechnology firm, has total revenues of $37 million in fiscal year ended September 30, 2007, with gross profit of $35 million and net income of $32.8 million.
Leveraging its many competitive advantages, CAT is executing the following strategies in order to broaden its market penetration, deliver results consistently, and increase shareholder value in the long term:
-- Focus on acquiring additional forestry plantation trees and access to long-term supply of wood fiber in promising Chinese markets;
-- Continue to improve the yields at its plantations by investing in research and development;
-- Leverage its unique non-tube plant propagation technology and broaden its business scope into other products, such as bamboos, Jatropha, and aromatherapy plants;
-- Continue to practice sustainable forestry management; and
-- Continue revenue & IP growth through technology-transfer.
CAT is also seeking to establish a strong market position in the bamboo cultivation industry, a $5 billion worldwide growth market, by leveraging its non-tube propagation technology. CAT's technology allows it to harvest bamboo within just two years and increase unit yield by 20-30%.
CAT will also seek diversified growth by cultivating a market for Jatropha, which produces seeds containing up to 40% oil. When the seeds are crushed and processed, the resulting oil can be used in a standard diesel engine, while the residue can be processed into biomass to power electricity plants. According to an August 24, 2007 Wall Street Journal article, which was also cited on CNBC on September 14, 2007, Goldman Sachs spotlighted Jatropha as one of the leading candidates for biodiesel production. CAT has signed a Memorandum of Understanding for 50,000 acres of Jatropha plantation in Indonesia.
CAT owns 100% of the capital in Tian Agro-Technology Ltd. (TAT); TAT owns 100% of the shares in Tian Agro-Technology Pte Ltd., a Singapore incorporated company, which in turn owns 80% of the capital in Qing Yuan Zhao Tian Eco-Agriculture Co., Ltd. (QYZT). QYZT was set up in Qing Yuan City, Guangdong Province, China in 1997 for eucalyptus cultivation. QYZT currently owns and operates a 16,650-acre eucalyptus plantation. -- China Agro-Technology, Ltd.
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
