MONTREAL, Sept. 04, 2018 (GLOBE NEWSWIRE) — via OTC PR WIRE — Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the “Company”), a Nevada investment company focused on the industrial technology market space, announced today that its Board of Directors has unanimously approved a plan to pursue a spin-off of the Company’s Canadian tech related business, Strategic Development of Technology (SDT), Inc, to Company shareholders. The separation is planned as a tax-free spin-off transaction to the Company’s shareholders and is expected to be completed in the fourth quarter of 2018.
The transaction is expected to result in two separate public companies that will benefit from leading positions in their respective industries. As of the Record Date (cut-off date), the Company shareholders will be eligible to receive SDT common stock shares. The transaction is intended to take the form of a tax-free distribution to Company shareholders. The expected stock distribution ratio will be confirmed in the comings weeks.
Ramy Kamaneh, CEO said: “We believe that establishing SDT as a stand-alone, fully reporting public company will allow for us to align more closely with our strategic initiatives. It will also give the investment community clearer insight into the potential value our businesses can continue to create. As a Canadian company, this is a compelling opportunity to reach investors in the U.S. and in Canada by trading on both the OTCQB and CSE stock exchange markets.”
The Company anticipates that the spin-off will enhance the growth potential and overall valuation of its businesses as a result of creating two separate companies specialized in fast-growing industries. With the added advantage of access to both Canada and U.S. market, the Company is confident it will better serve shareholders. It will also allow each company to be more focused and competitive in their respective industries. This announcement will also serve to enable SDT to execute even better on their strategy and drive their vision of a sustainable and equitable industrial technology market. Once the separation completed, Wuhan General Group (China), Inc will file its 3 years of audited financials to become a fully reporting company as well as up listing to OTCQB, and apply for name and ticker symbol change.
The Record date and completion of the transaction is subject to certain usual conditions, including SEC, Legal and shareholder approvals. The Company currently anticipates the Distribution Date to be in December 2018. Dates are subject to change. The Company will release information in the coming weeks with definitive dates and further information.
About Wuhan General Group (china), Inc.
Wuhan General Group (China), Inc. is a Nevada based investment company focused in the areas of Cryptocurrency mining operations, battery & electric material handling equipment manufacturing, services in artificial intelligence, as well as Internet of Things hardware. In addition to this, they are also dedicated to working in the application of blockchain technologies to mining, agriculture and construction industries.
About Strategic Development of Technology (SDT), Inc.
SDT, Inc. is a Montreal-Based Canadian corporation engaged in the research, development and manufacturing of industrial battery technologies and electric Material handling equipment (eMHE) to assist the mining, construction and agricultural industries in eliminating greenhouse gas (GHG) emissions by moving from diesel power to a battery-powered energy source. SDT’s deep understanding of battery chemistry and the in-field operations for industries such as the underground mining industry, gives it a competitive advantage to become a leader in the development of this space as well as in assisting these industries in their adoption to battery powered material handling equipment.
By complementing its industrial batteries and eMHE with predictive maintenance using artificial intelligence and hardware (Internet of things), SDT can effectively manage and coordinate a full-scale battery-powered operation and charging infrastructure 24-7 at some of the most remote locations in the world.
SDT is also building, through its subsidiary, a cryptocurrency mining operation as well as exploring the research and application of blockchain technologies to the mining, agriculture and construction industries.
Wuhan General Group (China), Inc.
For further information contact:
Phone: (514) 928-7368
Safe Harbour Statement – In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company’s future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency and profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company’s business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found on the Company’s website. The Company disclaims any responsibility to update any forward-looking statements.
Source: Wuhan General Group (China), Inc.