CD International Enterprises Terminates Acquisition of EM Resource Enterprises
DEERFIELD BEACH, Fla., Jan. 16, 2015 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources and distributes industrial commodities in China and the Americas, today announced that it has terminated acquisition of 100% equity interest in EM Resource Enterprises, Inc. ("EM Resource"), a Miami-based mineral and energy trading company.
After pre-auditing review, management found there are about over $30 million in account receivables that EM Resource has had in the past two years. The shareholder equity of EM Resource is mainly based on these account receivables. The collectability of these account receivables from a foreign country creates uncertainty for the acquisition.
By the termination agreement, CD International cancelled 209,375 shares of convertible Series "E" preferred stock valued at $13.4 million (convertible to approximately 209 million shares of CDII common stock) and a two-year $2 million promissory note to the EM Resource's shareholder while CD International returns 100% of equity ownership of EM Resource to the original shareholder.
In a separate transaction, CD International entered a consulting agreement with EM Resource. Both companies will work together on mineral trading transactions. CD International has an exclusive sale right for two EM Resource's suppliers of iron ore products.
Commenting on the announcement, Dr. James Wang, Chairman and CEO of CD International said "We believe we act in the best interests of our shareholders, as CD International will receive benefits of the partnership while CD International does not need to issue any shares to dilute our shareholders. We will continue partnership with EM Resource's management to leverage both companies' strength in China and South America to develop more mineral trading business opportunities. Currently we are working on several supply contracts with major iron ore producers in South America to Chinese buyers. We expect the partnership between CD International and EM Resource will create substantial values for our shareholders for years to come."
About CD International Enterprises, Inc.
CD International Enterprises, Inc. (OTC: CDII), is a U.S.-based company that sources and distributes industrial commodities in China and the Americas and provides business and management corporate consulting services. For more information about CD International, please visit http://www.cdii.net.
DISCLOSURE NOTICE:
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, CD International Enterprises, Inc. ("CDII") 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 expectations regarding CDII and the completion of agreements with other potential investors and partners for this effort, our ability to arrange financing, our expectations regarding profits, if any, and future operating results of CDII and growth in our operations.
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 September 30, 2013.
Contact:
CD International Enterprises, Inc.
Peisha Shen
Phone: +1-954-363-7333 Ext. 325
Email: [email protected]
SOURCE CD International Enterprises, Inc
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