Global Diversified Industries Inc (GDIV)

[mike306oh]

Closing Aurora, and the deal significance.

Buying Aurora for 3MM (as per the last PR - if it holds), when only the raw materials are worth 4MM:

http://www.cmaauctions.com/auctions/past_auctions/176_aurora.shtml

http://biz.yahoo.com/prnews/041207/latu055_1.html

For now, all that we know about the deal:

"Global Diversified estimates the value of the agreement at approximately $3 million and has ten days to finalize the contract. Global Diversified included the option in the agreement to outright purchase the asset package from the other entity within two years. Global Diversified Industries, Inc. Chairman and CEO Phil Hamilton said that the Company is "fortunate to be able to combine these assets within our business arsenal, as they will undoubtedly generate pathways for future growth and profitability." Hamilton added that Global Diversified "expects to realize increased efficiency from our manufacturing process once we fully incorporate the Aurora production components in our facility. The total implementation of these assets should be finalized within the next 60 days."

Some other sites:

http://www.kellysearch.com/us-company-900254138.html

http://news.tradingcharts.com/futures/0/1/62369810.html

http://www.mbinet.org/winners/printable/aurora1.html

For now, based on the known data, I'm cautiously optimistic. This deal could move GDVI's business to a different level.
Good time to load more, IMO.

"The acquisition includes a two-year licensing agreement between Global Modular, Inc., the wholly owned subsidiary of Global Diversified, and Impact Modular Leasing. Included with the assets are various tool, die and patterns for production use, an option for piggyback contract rights, all intellectual property including state approved engineered designs, the Aurora Modular brand name and electronic domains including Web sites.

This agreement is especially significant because Aurora Modular Industries, Riverside, Calif., was a 38-year-old company whose product designs were always considered superior by end users and competitors, from both an aesthetic and quality perspective. This testimonial is supported by the fact that during the past six years, Aurora Modular supplied more two-story structures to California schools than any other modular provider. Also, Aurora Modular was the second largest manufacturer in California with annual sales reaching as high as $70 million. Its latest state approved designs encompass comprehensive single and two-story offerings, along with permanent modular construction (complete campuses).

Also, Aurora's closing has created a significant void in the California modular manufacturing market, especially in Southern California where Aurora was headquartered. Global Modular, Inc. has already benefited from their closing by booking several new contracts from previous Aurora customers. Its modular division will continue to aggressively implement strategic sales and marketing tactics to capture market share in both the Northern and Southern California regions."

Hope this goes through. If it does, we shall have a very nice ride ahead of us, IMO.

Mike