Stock Code: 300328 Stock short name: EONTEC Announcement number: NO.2016-015
Dongguan EONTEC Co., LTD
The announcement of investment by Liquidmetal Technologies, Inc., controlled by the actual controller of the company, and the signing of a strategic cooperation agreement (parallel license agreement) between the company and Liquidmetal Technologies, Inc.
The company and all members of the Board of Directors assure that the information disclosed is true, accurate and complete and that there are no false records, misleading statements or material omissions.
Dongguan Eontec Co., Ltd. (hereinafter referred to as "EONTEC" or "company") and Liquidmetal Technologies, Inc. (registered in the United States) (hereinafter referred to as "LQMT") have their advantages in Liquidmetal field. In order to promote liquid metal related technology development and cooperation, and better promote the transformation and application of liquid metal technology industry, Mr. Li Yangde who are the company actual controller to control the liquid metal co., LTD. (the company was established for the stake in LQMT, registered in Hong Kong) plans to take a stake in the United States listed on the OTCBB LQMT 18% of the equity and signed the relevant agreement. At the same time the company signs a strategic cooperation agreement with LQMT (parallel to the license agreement). The relevant information is hereby announced as follows:
1. Introduction of LQMT
1) Name: Liquidmetal Technologies, Inc. (Listed Enterprises in OTCBB in the United States)
2) The registered address: 1209 Orange Street, Wilmington, DE 19801, USA.
3) Type: Company
4) Registered capital: US $710, 000.00
5) Scope of business: Engaged in research and sales of amorphous metal products
6) Founded Time: 15th May 2003
7) The main financial indicators for the three years are as follows:
Items
2012
2013
2014
January to September 2015
Total Assets
8,973
4,103
12,284
9,006
Shareholders' Equity
-1,572
-2,703
8,617
5,626
Total Income
650
1,026
603
107
Net Profit
-14,025
-14,206
-6,546
-5,789
Unit: $1000
The data comes from finance.yahoo.com
2. Liquid Metals Co., Ltd. intends to invest in LQMT and Strategic Cooperation Agreement (Parallel License Agreement) between EONTEC and LQMT.
1) Recently, the liquid Metal Co., Ltd., controlled by Mr. Li Yangde, the actual controller of the company, signed a cooperation agreement with LQMT. Both sides agreed Liquid Metals take an 18% stake in LQMT, the largest shareholder of LQMT, Mr. Li Yangde served as a director of LQMT and further increased its holdings to about 46% in the future. At the same time, the company and LQMT signed a strategic cooperation agreement (parallel license agreement), both parties agree to authorize each other to use their respective patents and trademarks in their respective exclusive areas.
2) After the liquid Metal Co., Ltd., controlled by Mr. Li Yangde, the actual controller of the company, took an 18% stake in LQMT, the strategic cooperation agreement (parallel license agreement company signed) between the company and LQMT constitutes a related transaction. "The bill about the Liquid Metals Co., Ltd controlled by the actual controller of the company invest LQMT and the signing of the strategic cooperation agreement between the company and LQMT (parallel license agreement)" needs to be submitted to the board of directors of the company for consideration. Independent directors of the company issued independent views on the bill, details of which can be found in the announcement disclosed online by Cninfo.
3) The main reasons why liquid Metal Co., Ltd. first took a stake in LQMT are as follows:
I. LQMT is a listed enterprise of OTCBB in the United States, and the examination and approval process is very long if EONTEC stake indirectly, therefore it cannot seize the investment opportunity immediately. However Liquid Metals Co., Ltd. is registered in Hong Kong, which makes the investment more flexible and takes advantage of time.
II. Liquid Metal Co., Ltd. is willing to use its funds to invest in the shares first and strive to maintain the investment integration opportunity for EONTEC. And promised in the future, the share of equity in LQMT, with its investment amount and the corresponding financial costs, reasonable taxes, and fees related to the project as well as determined fair price will prefer purchased by EONTEC.
III. LQMT is currently in a state of operating loss. If EONTEC takes a direct stake in LQMT, it may have a negative impact on EONTEC. Under the condition that the time is ripe for EONTEC, the liquid Metal Co., Ltd., which is transferred by EONTEC, holds all the shares of LQMT.
3. Purpose and affection of the investment of the Liquid Metal Co., Ltd.to LQMT referred to as the sign of strategic cooperation agreement between the company and LQMT (Parallel License Agreement)
1) Advantages of LQMT
I. Patent advantage
As a listed company of OTCBB, LQMT is the world's leading research and development and commercialization enterprise of bulk amorphous metals, with the most core and comprehensive intellectual property rights related to bulk amorphous metals, and is also the relying unit of Apple Corporation in bulk amorphous metal materials and technology (LQMT has licensed Apple Corporation to use all patents and intellectual property rights of its amorphous metal materials exclusively in consumer electronics since February 2013.
II. Sales Benefits
The headquarters of Apple, Microsoft, Google, and other large companies, CMF, and design departments are all in California, LQMT has inherent advantages in the promotion of bulk amorphous.
III. Market advantages in subdivided areas
LQMT has worked closely with luxury brands such as Vertu, Omega, which take its unique market advantages on the development of luxury market. Also, in many technology fields, such as medical, automotive, golf, aerospace, cutting tools, has in-depth research and development and potential customers.
IV. Popularity
The term "liquid metal" was founded by LQMT and exclusively uses the LIQUIDMETAL trademark. It is also a global industry standard-setter and is almost monopolized in the market. There are a lot of inquiries and visits every month, so there is little difficulty in expanding the market.
2) Advantages of EONTEC
I. Technology and R&D advantages
EONTEC has more than 20 years of experience in new material research and development, mold, mechanical preparation, molding and production, has a complete industrial chain, has a very high position in the field of metal materials, has become a new material company with strong growth potential, can integrate the top scientific research resources in the field of liquid metals, and rapidly industrialize the relevant liquid metal patents of scientific research institutes and institutions. The close combination of EONTEC and Metal Research Institute of the Chinese Academy of Sciences provide excellent solution ability for technical problems. In recent years, with the support of top amorphous experts in China, a series of large block amorphous products have been successfully developed and produced. Up to now, it is the only company in the world can announce the ability to form large bulk amorphous metal.
II. Market Advantages
China is the production base of many industries around the world, especially consumer electronics, auto parts, cutting tools, audio, sports goods, medical devices and so on. With the popularity of EONTEC for these years, if there are excellent products, the market is easy to open up.
III. Capital platform
Since its listing, EONTEC has been actively transforming and upgrading to the field of new materials. With its resources in the capital market and obtaining financing opportunities, it can further expand production and open up the market.
3) The influence of taking a stake in LQMT on EONTEC
I. To avoid the competition of the industry, by the right time, the liquid metal Co., Ltd. shall priority transfer all the equity (including the shareholdings) related to the LQMT to the EONTEC at the fair price.
II. In terms of production technology, LQMT is the most famous amorphous metal research institution in the world, covering almost the world's most core amorphous metal material formula, key processing technology, and other related intellectual property rights, due to the lack of mold design, equipment design, and other mass-production technology, so far it is limited to the production of small products.
After taking a stake in LQMT through liquid Metal Co., Ltd., ENOTEC will integrate the relevant resources and intellectual property advantages of the two top amorphous enterprises in the world, further strengthen the production technology of amorphous metals, is bound to accelerate the commercial application of amorphous metals, promote the revolutionary breakthrough of amorphous metals, improve the scientific and technological content and added value of products in the field of amorphous alloy industry, and create new profit growth points for the company.
III. In terms of market and scientific research, LQMT has co-established a scientific research team with Apple, which is only limited to material research and development before this and will provide a lot of machinery and equipment and production technology after the cooperation with EONTEC, and the application of new products will be developed jointly by the three parties in the future.
In addition to Apple, other companies, such as SWATCH's watch industry, LLPG's luxury industry, golf, racket and other sports equipment, medical, cutting tools, cars, smart equipment, sound, robots and so on, will have a rapid development.
4. Letter of commitment to regulating related transactions and avoiding peer competition
After the liquid Metal Co., Ltd., controlled by Mr. Li Yangde, the actual controller of the company, took a stake in LQMT, the company signed a strategic cooperation agreement (parallel license agreement) with LQMT had formed a related transaction. At the same time, the scope of LQMT business and the company constitute the same competition. In order to standardize related transactions and avoid peer competition, Mr. Li Yangde, the actual controller of the company, and his liquid metal co., Ltd., which is controlled by the company, issued relevant letters of commitment. For more information, see the related announcement disclosed on the Cninfo.
Announced By
Dongguan Eontec co., Ltd.
Board of Directors
March 10, 2016
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