Do you think Ecolab would invest into a scam company ?
Taken from SEC 10-Q, 14.08.2009
MINORITY INTEREST
On February 15, 2008, we entered into a stock purchase agreement with Ecolab Inc., a Delaware corporation, pursuant to which Ecolab agreed to purchase and Linkwell Tech agreed to sell 888,889 of its shares, or 10% of the issued and outstanding capital stock of Linkwell Tech, for $2,000,000. On March 28, 2008 and June 4, 2008, Linkwell Tech received $200,000 and $1,388,559, respectively, from Ecolab. Linkwell Tech received the entire investment of $2,000,000 from Ecolab, including the $400,000 loan that Ecolab released to Linkwell Tech and accrued interest of $11,441. On May 31, 2008, the Company, Linkwell Tech and Ecolab entered into a Linkwell Tech Group Inc. Stockholders Agreement ("Stockholders Agreement"), whereby both the Company and Ecolab are subject to, and benefit from, certain pre-emptive rights, transfer restrictions and take along rights relating to the shares of Linkwell Tech that the Company and Ecolab each hold. From that day, the loan from Ecolab of $400,000 and accrued interest of $11,441 became investment and need not to be paid back. After this transaction, Ecolab became the 10% minority interest holder of Linkwell Tech. Because LiKang Disinfectant is the wholly-owned subsidiary of Linkwell Tech, Ecolab is also 10% minority interest holder of LiKang Disinfectant.
