Earthasia International Holdings Ltd. (Graphex Group) Announces Exclusive Letter of Intent to Acquire Chinese Battery Maker
Earthasia International Holdings Ltd. (OTCQX:ETIHY) announced its intention to acquire a majority stake in Shenzhen KYSS Technology Co., Limited, a producer of graphene lithium-ion batteries for mopeds and scooters. The agreement includes an exclusive negotiating period until December 31, 2021, enabling Earthasia to conduct due diligence. The acquisition aims to enhance Earthasia's energy storage solutions and complement its existing spherical graphite manufacturing operations, which are expected to increase annual production capacity significantly.
- Potential acquisition of KYSS to enhance energy storage solutions.
- Increased annual production capacity of spherical graphite by 30,000 tons, reaching a total of 40,000 tons.
- Strategic location of manufacturing facility near high-quality natural graphite reserves.
- Completion of acquisition is subject to due diligence, introducing uncertainty.
- Exclusive negotiating period ends December 31, 2021, which may limit negotiation flexibility.
NEW YORK, NY / ACCESSWIRE / March 5, 2021 / Earthasia International Holdings Ltd. ("The Company") ("Graphex Group") (OTCQX:ETIHY) (HKEX:6128), a leader in graphene products and technologies and a manufacturer of spherical graphite and graphene technology for the renewable energy sector, today announced the Company has entered into a Letter of Intent with an exclusive negotiating period to acquire a majority stake in Shenzhen KYSS Technology Co., Limited ("KYSS"), a China-based producer of graphene lithium-ion (Li-ion) battery cells and replaceable battery modules for mopeds and scooters.
"Our Strategy is to become a leader in energy storage solutions," explained Chan Yick Yan Andross, Chief Executive Officer and Director, Earthasia International Holdings Ltd. "We continue to explore all opportunities to reinforce our position in the new energy sector by extending our products and services downstream. The acquisition of KYSS, if materialized, can become a core component as we execute our strategy."
The Company has been granted a period of exclusivity until December 31, 2021 ("Exclusive Period") as it conducts its due diligence review on KYSS. Subject to due diligence review and formal agreement, the Company intends to become the major shareholder of KYSS by subscribing to the newly issued shares of KYSS, thereby acquiring KYSS's graphene lithium-ion battery business, to compliment the Company's spherical graphite manufacturing business.
The Company's spherical graphite manufacturing facility is strategically located in Heilongjiang Province, which has significant high-quality natural graphite reserves. Once the Company's recently announced new production facility, Heilongjiang Province Graphex New Material Technology Company Limited, is fully operational, the Company expects to increase annual production by 30,000 tons to a total of 40,000 tons.
The Company also recently announced a name change from Earthasia International Holdings Ltd. to Graphex Group. It was the first of a number of strategic actions being taken to accurately reflect the Company's focus on graphene research, manufacturing and development and further capitalize on the opportunities the graphene sector presents. The Company remains committed to its strategy of achieving leadership in the graphene business.
About Earthasia International Holdings Ltd.
Earthasia International Holdings Ltd. is a publicly traded company, listed on the Hong Kong Stock Exchange and the OTCQX Best Market. Based in the People's Republic of China (PRC), and strategically located near the largest supply source of high quality natural graphite anywhere in the world, the Company is a leading supplier of graphene products. Earthasia owns 25 patents in the PRC, including products, production methods, machinery design, and environmental protection. The Company's spherical graphite is an essential anode material for lithium-ion batteries.
Media Contact:
Gavin Davidson
investrel@earthasia.com.hk
This release may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of our company, are generally identified by use of words "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "seek," "strive," "try," or future or conditional verbs such as "could," "may," "should," "will," "would," or similar expressions. The Company's ability to predict results or the actual effects of its plans or strategies is inherently uncertain and based, in part, on third party market research which the Company's assumed to be accurate. Accordingly, actual results may differ materially from anticipated results. Some of the factors that could cause the Company's actual results to differ from its expectations or beliefs include, without limitation, the risks of its businesses, the assumed significant growth of graphene related products and spherical graphite products. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company does not undertake any obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
SOURCE: Earthasia International Holdings Ltd
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FAQ
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