Sino-Global Signs Share Purchase Agreement to Acquire Majority Stake in Shanghai-based Global Shipping Company Mandarine Ocean Ltd, says a press release published on their website.
Share Purchase Agreement
Sino-Global Shipping America, Ltd. (NASDAQ: SINO), a non-asset based global shipping and freight logistic integrated solution provider, today announced the signing of a Share Purchase Agreement with Mr. Kelin Wu, the 88.5% shareholder of Mandarine Ocean Ltd, (“Mandarine Ocean” or “MO”), a Shanghai, China-based shipping company registered in the Marshall Islands.
Mandarine Ocean
- Mandarine Ocean was founded in 2013 and is a shipping company providing worldwide ocean freight service.
- Mandarine Ocean currently has long-term contracts to operate 14 bulk carriers.
What is in the agreement?
Under the Agreement, Sino-Global will acquire
- a 75% majority position in Mandarine Ocean for up to $3.75 million,
- with a combination of cash and stock dependent on MO’s financial performance,
- particularly its pre-tax net profit (annual pre-tax net profit over the next two-years).
Annual revenue
MO’s revenue
Over the past three years, MO has an average annual revenue of approximately US$38 million.
SINO’s revenue
With the integration of MO’s business, there will be a significant increase in SINO’s revenue beginning in the current fiscal 2020 fourth quarter and into fiscal 2021.
The details of the transaction in detail will be available in the Company’s filing with the Security and Exchange Commission on Form 8-K.
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Source: SinoGlobal
