World Trade Systems PLC Announcement of New Business Activity (1290P)
16 February 2016 - 3:45AM
UK Regulatory
TIDMWTS
RNS Number : 1290P
World Trade Systems PLC
15 February 2016
World Trade Systems PLC ("WTS")
Chairman's Statement
World Trade Systems PLC 15 Feb 2016
Announcement of New Business Activity
In my Statement which accompanied the Annual Financial Report
for the 12 months to 30 September 2014, I stated that the principal
risk and uncertainty facing the Company relates to it finding
suitable new business opportunities, within the timeframe of the
current financing arrangements. Should such an opportunity not
materialise and if new financing arrangements are not forthcoming
the Board will consider taking steps to wind up the Company.
We are pleased to announce that we have been approached by
Avalon Enterprises Ltd ("Avalon") and JH Global Partners Ltd ("JH
Global") to inject a new business into the Company and immediately
seek a relisting of the Company through lifting of the suspension
of trading in the Company's shares. Avalon and J H Global have
signed subscription agreements of 1.25 million shares each at GBP
0.02 per share injecting a total of GBP 50,000 into the Company to
implement the proposed transaction described below.
We wish to announce that a Memorandum of Understanding has been
signed with Suzhou Weibao Investment Co Ltd ("SZWB") which, in
summary, provides for the following proposed events, subject to due
diligence, and shareholder and regulatory approval by the UK
Listing Authority:
SZWB., a PRC corporation located in Suzhou China has been
engaged in health care businesses involving the production and sale
of bio-tech medical and healthcare products as well as in
investment in research, development and patenting of biotechnical
processes and formula used to make the products which it sells.
WTS will acquire an existing hitherto unused company in the SZWB
group thereby converting it into a wholly foreign owned enterprise
in China ("WTS China"), which will be fully licensed as a domestic
Chinese company for the purpose of engaging in (i) manufacturing
and selling SZWB's bio-technical medical and healthcare products;
(ii) engaging in domestic and cross-border mergers and acquisitions
in bio-technical businesses; and (c) assisting in the development
of off-shore care centres for the elderly, including Chinese
persons seeking offshore medical services (collectively, the "WTS
China Venture Business"). These business activities and the
know-how relating thereto will be transferred into WTS China by
SZWB such that all costs and revenues relating thereto will
immediately accrue to WTS China. It is anticipated that this new
business of WTS in China will formally commence from March 1, 2016.
The goal will be to generate before tax profits of approximately
US$3 million per year from this new business.
At the same time, WTS will enter into a loan agreement with
SZWB, pursuant to which SZWB will advance the sum of GBP1,000,000
to WTS (the "SZWB Loan") which will be used to repay all of WTS's
current and outstanding shareholder loans and related debt owed to
Kudrow Finance Limited, the Company's majority shareholder.
Following the signing of the MOU, Dr Shao Chen, the founder and
Chairman of SZWB will join the Board of Directors.
Mr Abdul Khader Mohamed Ismail, a banker by background who has
considerable experience with mainland Chinese Companies, will join
the Board at a later stage after the GBP 1.0 million loan to WTS is
placed in Escrow with the UK legal counsel.
We have also signed an engagement letter with Optiva Securities
Limited appointing them as Financial advisor and Broker to assist
with the Company's application to lift the suspension of trading in
the Company's shares and it is hoped that this will occur
simultaneously with the commencement of the Company's new business
in China.
We are pleased to be able to make these announcements after so
many years of unsuccessful efforts to revive the Company's fortunes
and we look forward to all shareholders support in these new
endeavours.
Robert Lee
Chairman
15 Feb 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
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