SHANGHAI, April 12, 2011 /PRNewswire-Asia-FirstCall/ -- Headquartered in Shanghai, China Golf Group, Inc. ("China Golf", or the "Company", or "we"), a leading developer of premium golf courses, golf communities and improved land properties in China and the first of its kind publicly registered and reporting in the United States, announced that on March 31, 2011, Company entered into an Asset Purchase Agreement with Beijing Xingwang Real Estate Co., Ltd., a Sino joint venture founded by Maxwell Investment Ltd. and Beijing Shengwen Investment & Consulting Co., Ltd., to purchase certain assets of the joint venture, namely, 16 villas in Noble House located in the Daxing District of Beijing estimated to be valued at $13.5 million.
In consideration for the transfer of the villas, China Golf will issue to the seller 4,500,000 of its shares of common stock (which is based on an appraisal of the villas of $13,500,000). An appraisal of the villas is required to be completed within 30 days of the execution of the agreement. The closing is required to occur within 30 days after the completion and acceptance of the appraisal. Once the appraisal is completed and accepted, the transfer of the land and villas will be completed and the shares will be issued. In the event that the appraisal is less than $13.5 million the purchase price well be adjusted dollar for dollar and China Golf will only be required to issue such number of shares as shall equal the appraised value divided by 3.
Noble House is 30-minute driving distance from Beijing Capital International Airport, 20-minute driving distance from China World Trade Center and Central Business District. Furthermore, it can easily access to Beijing-Tianjin-Tangshan freeway.
Noble House occupies an area of 33,500 m2 and the total floor area is 22,908 m2. In which, one clubhouse and 33 villas have been built, among these 16 villas are available for sale. Moreover, a 4,000-m2 artificial lake surrounded by 20 lake-view wooden holiday houses has been built in the community.
Mr. Tiger Bi, the CEO of China Golf commented, "successful purchase of the assets in Noble House will increase the company's net asset by USD 0.43 per share and the potential net profit will be USD 6.18 million; Meanwhile, it is a successful attempt for China Golf to M&A through equity rather than cash."
About China Golf Group
Founded in 2006, China Golf Group ("China Golf" or the "Company") is a Shanghai headquartered, leading developer of premium golf courses, golf communities and improved land properties sold to developers of private residence villas and/or corporate clubs. In July 2010, China Golf merged with a Delaware public company and filed with the U.S. Securities and Exchange Commission ("SEC"). China Golf designs, constructs and develops premium golf courses and golf communities in the People's Republic of China ("PRC") through our PRC based operating companies. We offer a full spectrum of golf course development and management services, including design, engineering, construction, and maintenance of golf courses as well as consulting and management of golf projects. Since the formation of Beijing Shungao in 2006, we have completed over ten golf courses in China. With our influential strategic partners, we are expanding our business to an invest-design-build-mange model with an objective to become the top golf course management company and the largest golf course chain in China.
For more information on the Company, please visit http://www.chinagolfgroup.com/
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include "forward- looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements". Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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 the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward- looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE CHINA GOLF GROUP, INC./PRN ASIA