True Product ID Acquires Majority Ownership of Chinese Joint Venture Company, True Product ID Technology (Beijing) Limited; New Member from China Joins TPID US Board
Monday May 14, 9:55 am ET
BEIJING & PHILADELPHIA--(BUSINESS WIRE)--Richard A. Bendis, the Chairman, CEO, and President of True Product ID, Inc. (TPID US) (OTCBB:TPDI - News) announced that TPID US has closed the acquisition for 20% of the Chinese joint venture company, True Product ID Technology (Beijing) Limited (the "Chinese JV Company"). Combined with the 40% ownership interest it acquired in January 2007, the acquisition now gives TPID US majority interest of the Chinese JV Company and allows TPID US to, among other things, recognize 100% of the revenues of the Chinese JV Company in accordance with applicable consolidation, revenue recognition, accounting, and other principles, guidelines and standards.
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On May 11, 2007, TPID US executed an acquisition agreement with the owner of the 20% Chinese JV interest, Sichuan Valencia Trading Limited ("SVTL"), which received restricted 100 million shares of TPID US. The 100 million shares was less than 50% of the approximately 209 million shares provided as a dividend to shareholders of TPID US' former parent, Sure Trace Security Corporation, which resulted in TPID US' being a separate independent entity entitled to receive approximately 42.5% of the revenues of the Chinese JV Company. As a result of the recent acquisition, TPID US gains much more than the revenue rights it previously secured by virtue of the Sure Trace spin-out related dividend; it has secured a 60% and thus majority ownership interest in the Chinese JV Company. Under the acquisition agreement, SVTL representative, Sergio da Luz, was also appointed to TPID US' Board of Directors.
Mr. da Luz currently is the manager of SVTL, a member of the board of director of the Chinese JV Company, and the managing director of Wanda Technology Limited, a Hong Kong Company which develops and distributes worldwide consumer goods incorporate innovative solar energy technology. Mr. da Luz's career to date has been diverse. It has involved countries around the world (mainland China, Hong Kong, Macau, the United States, Spain, and Sweden). It has involved multiple industries (advanced technology, environmental, consumer goods including garments and apparel, computers, internet, electronics, tourism and hospitality, and wine and spirits, among others). It has involved multiple areas, fields or disciplines (OEM manufacturing, including electronics and computer components; international sales and distributions; international trade and importing and exporting; research and development; operations; and management). Significantly, one of Mr. da Luz's focuses has been "green" environmental measures, especially those which help address the rapid growth of the Chinese economy and the environmental concerns such growth presents. Several of his companies focus on developing innovative technology related to alternative energy such as solar energy, water treatment and filtration, and recycling. A graduate of La Salle College in Hong Kong and the Institute of Foreign Language in Spain, in addition to SVTL and the Chinese JV Company, Mr. da Luz is a director of several companies including Wanda Technology, Santaiwanda, Valencia Wine Trading, and China Fishery and Agriculture Bioenvironmental Technology, among others.
TPID US Chairman, CEO, and President, Richard A. Bendis, stated: "This is truly a new day for TPID US. East and West will work as one, as we are now under the TPID US flag. As a result of the acquisition, TPID US now owns majority control of the Chinese JV Company and is now able to recognize 100% of the Chinese contract revenues. We are humbled by the continuing respect and support China has placed in us. We are honored by Mr. da Luz's decision to join our Board. With his additional leadership, we are stronger than ever as we fulfill what we have already secured and aggressively pursue other opportunities"
SVTL representative and now TPID US Board member, Sergio da Luz, stated: "As a board member of the Chinese JV, I have the fortune of seeing upfront the exciting developments occurring in China. We secured the first critical favorable ISR report from the International Preliminary Examining Authority with regard to our PCT application. As reported on the website sponsored by the Association of Chinese Anti-Counterfeiting Technology, www.21cata.com.cn, our technology was recently recognized by representatives from the Chinese Ministry of Public Security. Needless to say, the recognition our technology has received in China has been tremendous. We look forward for more to come and for such continued recognition to bring in additional contract revenues."
