International Building Technologies Group, Inc. Has Completed the Audit and Due Diligence Process Related to Its Possible Merger With FHH Sino
Dec. 7, 2010 (Business Wire) -- International Building Technologies Group, Inc. (OTCBB:INBG) announced today that, pursuant to the signed Letter of Intent between INBG and FHH Sino New Energies Co., Ltd., the audit and due diligence study undertaken by a PCAOB listed auditing firm in Hong Kong and a law firm in Beijing, China have been completed and signed off by these two firms.
According to the due diligence study provided by the Beijing law firm, FHH Sino New Energies Co., Ltd., a Chinese company (“FHH Sino”) located in Weihai, Shandong Province, is in compliance with the laws and regulations of China under which FHH Sino operates.
According to the report provided by the auditing firm, the total assets of FHH Sino are worth approximately USD15 million. The current asset value excludes the value increment of the FHH Sino’s land property of where the FHH petroleum storage facilities Phase One located next to the Weihai Harbor with total areas of 142,525 square meters (1,546,000 square feet approx.), which was worth more than USD 22 million according to an appraisal a year and half ago prepared by an local accounting firm in accordance with China accounting standards.
Based on the issued DD and audit reports, Currently INBG and FHH Sino are in negotiations relative to the exact terms of the definitive merger agreements. Meanwhile, FHH Sino is being restructured in order to establish its holding company or beneficiary company in Hong Kong for the merger with INBG.
Stated Kenneth Yeung, CEO of INBG: “We are glad that the audit and due diligence have been completed. It has taken longer than expected, but we wanted to make sure all audit and due diligence were handled properly in order to comply with the laws and regulations in both the U.S. and China and to provide maximum protection to our shareholders. We have posted some recent photos of FHH Sino’s construction sites with the being built petroleum storages tanks on INBG’s website and we will keep our investors informed once a definitive merger agreement is executed.”
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company’s analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
International Building Technologies Group, Inc.
Patrick Donahoo, 702-927-7668
ir@ibtgi.com
Source: Business Wire (December 7, 2010 - 9:30 AM EST)
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