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Monday, January 08, 2007 11:55:30 AM
CTXI - huge MERGERNEWS!!! 
January 8, 2007 - 9:50 AM EST
MicroHoldings US, Inc. (Formerly Centrex Inc.) Acquires 40% of MicroCars, Ltd., a Sri Lankan Manufacturer of Automobiles
MicroHoldings US, Inc. (Pink Sheets:CTXI) today announced that it has signed an agreement to acquire a 40% equity stake in MicroCars, Ltd. Micro Cars is an 11-year-old company that has successfully designed and operated an automobile manufacturing and assembly facility in Sri Lanka. The transaction requires MicroHoldings US (Holdings) to pay $300,000 in cash over the next six months to MicroCars. Shareholders of MicroCars will also receive warrants in Holdings, exercisable after two years.
Established in 1995, MicroCars, Ltd. is the only automobile manufacturer in Sri Lanka, and offers a unique, cost effective system for assembling quality cars using local labor and available local materials. Created by Dr. Lawrence Perera, previously an engineer at BMW and Volkswagen, MicroCars features a line of vehicles that includes a sedan, a coupe, a minivan and a four wheel drive pickup truck.
Stated Jeffrey Flannery, CEO of MicroHoldings US, Inc., "The decision by both Parties to take this step was the result of working together for over a year and seeing the benefit of establishing a closer working relationship. MicroCars has achieved a high level of success in Sri Lanka and has a lot of room to grow in the coming years. At the same time, its unique manufacturing and assembly operation is a model that we believe can be successfully replicated in other developing countries. We look forward to helping MicroCars expand and succeed in both Sri Lanka and around the world."
Holdings previously acquired a subsidiary of MicroCars, MicroCars International, which gave Holdings the international licensing rights to foreign car and plant sales. This new agreement supersedes that previous agreement, formalizing those international rights and providing Holdings with the 40% equity position in MicroCars in exchange for the cash payments. Holdings management has indicated that the cash payments for this transaction will come from private investors.
The Micro Cars facility is labor intensive unlike US and Western plants that rely on expensive automation and robots. The system was designed for countries such as Sri Lanka where low labor rates can be matched with a need for high quality, inexpensive vehicles. According to figures released by MicroCars, the plant is currently producing about 35 to 40 cars per months and has the capability to produce as many as 600 per month. The MicroCars sedan and coupe sell for about $5,000 each. The Minivans sell in Sri Lanka for about $10,000. The company also assembles a SUV under license to the Korean car maker Sanyan and sells that vehicle for about $40,000 per unit.
More information on the MicroHoldings US, Inc. can be found at www.microholdings-us.com. Information on MicroCars, Ltd. can be found at www.microcars.lk.
January 8, 2007 - 9:50 AM EST
MicroHoldings US, Inc. (Formerly Centrex Inc.) Acquires 40% of MicroCars, Ltd., a Sri Lankan Manufacturer of Automobiles
MicroHoldings US, Inc. (Pink Sheets:CTXI) today announced that it has signed an agreement to acquire a 40% equity stake in MicroCars, Ltd. Micro Cars is an 11-year-old company that has successfully designed and operated an automobile manufacturing and assembly facility in Sri Lanka. The transaction requires MicroHoldings US (Holdings) to pay $300,000 in cash over the next six months to MicroCars. Shareholders of MicroCars will also receive warrants in Holdings, exercisable after two years.
Established in 1995, MicroCars, Ltd. is the only automobile manufacturer in Sri Lanka, and offers a unique, cost effective system for assembling quality cars using local labor and available local materials. Created by Dr. Lawrence Perera, previously an engineer at BMW and Volkswagen, MicroCars features a line of vehicles that includes a sedan, a coupe, a minivan and a four wheel drive pickup truck.
Stated Jeffrey Flannery, CEO of MicroHoldings US, Inc., "The decision by both Parties to take this step was the result of working together for over a year and seeing the benefit of establishing a closer working relationship. MicroCars has achieved a high level of success in Sri Lanka and has a lot of room to grow in the coming years. At the same time, its unique manufacturing and assembly operation is a model that we believe can be successfully replicated in other developing countries. We look forward to helping MicroCars expand and succeed in both Sri Lanka and around the world."
Holdings previously acquired a subsidiary of MicroCars, MicroCars International, which gave Holdings the international licensing rights to foreign car and plant sales. This new agreement supersedes that previous agreement, formalizing those international rights and providing Holdings with the 40% equity position in MicroCars in exchange for the cash payments. Holdings management has indicated that the cash payments for this transaction will come from private investors.
The Micro Cars facility is labor intensive unlike US and Western plants that rely on expensive automation and robots. The system was designed for countries such as Sri Lanka where low labor rates can be matched with a need for high quality, inexpensive vehicles. According to figures released by MicroCars, the plant is currently producing about 35 to 40 cars per months and has the capability to produce as many as 600 per month. The MicroCars sedan and coupe sell for about $5,000 each. The Minivans sell in Sri Lanka for about $10,000. The company also assembles a SUV under license to the Korean car maker Sanyan and sells that vehicle for about $40,000 per unit.
More information on the MicroHoldings US, Inc. can be found at www.microholdings-us.com. Information on MicroCars, Ltd. can be found at www.microcars.lk.
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