$2.2M Contract w/ China Railway
BEIJING, July 29 /PRNewswire-Asia / -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), a leading provider of customized heavy duty lifting and carrying machinery used in large scale infrastructure projects such as railway, highway and bridge construction, today announced it has signed a one year lease agreement with China Railway Group providing for payments valued at approximately $2.2 million USD with respect to the lease of a tyre trolley by China Railway Group. The lease terms include an up-front payment of approximately $400,000 plus monthly payments of approximately $150,000 USD for a period of 12 months. China Railway has the option to purchase the equipment at residual value at the end of the lease.
Mr. Yabin Liu, Chief Executive Officer of Wowjoint, stated: "We are pleased to announce this lease agreement with China Railway Group and believe it provides a solution to stimulate sales while meeting customer demands. Although expansion into the leasing business requires Wowjoint to finance construction of the equipment, we believe this structure will provide our Company with a recurring and more predictable revenue stream. We believe we will be able to secure bank financing to cover the majority of the carrying costs. In addition, we expect to structure future leases with a buy-out clause."
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