China Logistics Group Pursues Strategic Acquisition Candidates
SHANGHAI, China, March 5, 2014 /PRNewswire/ --
China Logistics Group, Inc. (OTCQB: CHLO), an international freight forwarder and logistics management company, announced today that the company sees opportunity for expansion through potential acquisition or merger in fiscal 2014.
For the past several years the logistics and freight forwarding industry in China has suffered from a sustained weakness in global demand largely due to a prolonged recession in the European Union and a significant slowdown in China's domestic economy. During this time China Logistics Group began several initiatives for growth including diversifying its client base through expansion into new markets and broadening the scope of its services with the addition of limited domestic trucking services.
While China Logistics Group believes its growth initiatives coupled with economic improvements in certain key markets will place the Company on a sustainable growth track, it also sees the potential to further accelerate that growth through strategic acquisition to reach greater economies of scale. As a result management has begun to evaluate several potential acquisition opportunities and is in early stage due diligence with at least one potential acquisition candidate. The Company intends to aggressively pursue these opportunities and is hopeful that at least one strategic acquisition will take place in the current fiscal year.
Danny Chen, Chairman and CEO of China Logistics Group, commented, "We believe the logistics market will gradually recover as the world economy improves making this the perfect time to look for new opportunities to give us an advantage in this competitive market. We believe that the right strategic acquisition or merger will substantially accelerate growth in our business and set the stage for rapid expansion should markets improve substantially in the coming years."
About China Logistics Group, Inc.
China Logistics Group, Inc. is a U.S. company doing business in China through its subsidiary Shandong Jiajia International Freight & Forwarding Co., Ltd. (Shandong Jiajia). Established in 1999; Shandong Jiajia is an international freight forwarder and logistics manager located in China. Shandong Jiajia acts as an agent for international freight and shipping companies. It sells cargo space and arranges land, maritime, and air international transportation for clients seeking primarily to export goods from China. For more information please visit http://www.chinalogisticsinc.com.
Safe Harbor Statement
China Logistics Group, Inc. is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding our South American shipping volumes and economic expansion in South America and other risk factors impacting our company, some of which may be beyond our control. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
SOURCE China Logistics Group, Inc.