Good Life China (GLCC) Recapitalization, Share Structure Update and reduction Of Float Via Share Buy Back (Filing)
BEIJING, September 8, 2008 -- Good Life China Corporation www.goodlifechina.com (GLCC) the issuer, has recapitalized the company to 985 million shares. The recapitalization was necessary to pay or finance the transaction previously announced with the Shijiazhuang based "The People Home" (TPH) chain of 625 stores.
The management sees the finance of TPH with the issuance of 222 million shares as a very significant one, from both a top-line revenue point of view, and in terms of achieving ever-growing economies of scale on the logistics side of the retail business - which is the core focus of Good Life's business model. Additionally, the acquisition significantly expands Good Life's retail level footprint in China, and may signal the first signs of consolidation of retailers in rural areas of China.
TPH has a total of over 600 stores, carrying a variety of low-cost consumer products. With the addition of TPH, Good Life now boasts a total of over 3,300 stores.
The issuer intends to also shortly place a treasury order of 240 million shares for the China based AGRICO subsidiary. In the event the AGRICO transaction does not close this 240 million shares will be returned back to the treasury.
Based on the assumptions that these transactions close as planned (AGRICO closing outstanding) the issuers share structure will be as foollows:
Authorized Shares 985,000,000
Outstanding Shares 888,000,000
Estimated Float 365,000,000
The issuer reminds its followers that the majority of these shares and the share increase will be or are being issued as restricted shares (non tradable) shares and this should not impact the float for some time yet to come.
In an effort to demonstrate confidence to the markets, the issuer intends to reduce the estimated float (shares currently in the circulation free trading) share buy back by as much as 30.125% in the fiscal 2008 year.
