QIQIHAR, China, June 22 /PRNewswire-Asia-FirstCall/ -- Forex365, Inc. ("Forex365" or "the Company") (OTC Bulletin Board: FRXTD) today announced that it has completed a share exchange transaction with China Golden Holdings, Ltd. ("China Golden"), a leading regional provider of field seeds and fertilizers in Northeastern China, and closed a $2.5 million private placement financing on June 17th, 2010. The newly public company is quoted on the Over the Counter Bulletin Board under the symbol "FRXT." The Company intends to change its corporate name to Fuer International, Inc.
On June 16, 2010, the Company entered into a share exchange with the shareholders of China Golden pursuant to a wholly-owned subsidiary of the Company. Immediately following the share exchange, the Company entered into a securities purchase agreement with Allied Merit International Investment, Inc. for the sale of an aggregate of 1,018,868 common shares, and warrants to purchase 873,315 common shares, generating aggregate gross proceeds of $2,500,000. The warrants are exercisable at a price of $2.58 per share and have a three-year term. Following the share exchange and private placement, total shares outstanding were 12,958,000. For more information on the share exchange and private placement, please refer to the Form 8-K filed by the Company on June 22, 2010.
China Golden's operations are conducted through its subsidiary Qiqihar Fuer Agronomy Inc., a leading regional provider of field seeds and fertilizers in Northeastern China. Founded in 2003, it produces and distributes seeds suitable for natural conditions of Northeast China and Inner Mongolia. Seed products contributed about 80% of total revenue in 2009. China Golden controls exclusive rights or patents to 10 varieties of corn seeds, 19 types of soybean seeds and 14 rice seed varieties that adapt to different temperature zones in the region. It sells its products through a combination of wholly owned stores and its newly launched franchise stores.
As of May 2010, China Golden has signed contracts with breeding bases of 16,474 acres, with an annual production capacity of 20 million kilograms. It also has two fertilizer production lines, with an annual production capacity of 50,000 tons. Currently, China Golden has one pending patent on fertilizer, rights to four seed varieties and over 40 registered trademarks.
In the year ended December 31, 2009, China Golden generated $16.2 million revenue and $2.9 million in net income, representing annual growth rates of 25.4% and 43.1%, respectively. In the quarter ended March 31, 2010, revenue was $15.3 million, up 39.1% from the first quarter of 2009. Net income was $5.0 million in the first quarter of 2010, up 38.8% from $3.6 million in the same quarter of 2009. As the seed business has strong seasonality, most of China Golden's annual revenues are generated in the first and second quarters of the year.
"We are pleased to complete the share exchange with Forex365 and become a U.S. listed public company," stated Mr. Li Zhang, Chairman and CEO of China Golden Holdings, Ltd. "We plan to utilize our current cash position and the proceeds of our recent financing to continue to rapidly develop our business by investing in research and development, expanding our network of branded stores and acquiring seed and fertilizer companies."
About Forex365, Inc.
Forex365, Inc is a holding company for China Golden Holdings, Inc ("China Golden"). With its subsidiaries, China Golden is a leading Chinese agricultural material company providing quality hybrid corn seeds, soybean seeds, rice seeds and fertilizer products to farmers in the Northeastern China, which is the most important agricultural region in the country. Through its 1,094 distributors and 3,430 outlets, the Company distributes its products to 58 million farmers located in Heilongjiang, Jilin, Northeast Inner Mongolia and the rest of China. China Golden sources its seed products through exclusive contracts with breeders in Heilongjiang, Jilin, and Northeast Inner Mongolia. It controls exclusive rights or patents to provide 10 varieties of corn seeds, 19 types of soybean seeds and 14 rice seed varieties that adapt to different temperature zones in the region. China Golden has signed contracts with breeding bases of 16,474 acres, with an annual production capacity of 20 million kilograms and two fertilizer production lines with an annual production capacity of 50,000 tons. China Golden has one pending patent on fertilizer, rights to four seed varieties and over 40 registered trademarks. For more information visit http://www.fuer.com.cn .
About Allied Merit International Investment, Inc.
Allied Merit International Investment, Inc. (AM) is an active International Investment Corporation focused on investing into and supporting small and middle-sized Chinese companies with high-growth potential. Through its "PE + Listing" model, AM has completed over 20 investments into Chinese companies in the past several years. For more information about AM, please visit http://www.alliedmerit.com .
Certain statements made in this press release may constitute "forward- looking statements on our current expectations and projections about future events." These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These statements are based on our current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's Form 8-K filed with the Securities and Exchange Commission on June 22, 2010 and available on its website (www.sec.gov). These forward-looking statements are made as of the date of this press release, and we assume no obligation to update these forward-looking statements whether as a result of new information, future events, or otherwise, other than as required by law.
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SOURCE China Golden Holdings, Ltd.