China Dredging Group Company Ltd. Announces Merger With U.S. Public Reporting Shell Company
China Dredging Group Company Ltd., a leading private dredging contractor domiciled in the BVI with operations in the P.R.C., has announced today that it has merged with CAC, a U.S.-public-reporting shell company on October 27th, also domiciled in the BVI. Following the merger, China Dredging is the surviving corporation and its management continues in place without change following the transaction. China Dredging will continue as a public reporting company in the United States but currently has no registered or trading securities and does not yet maintain a listing on any stock exchange.
Mr. Zhuo Xinrong, Chairman and CEO of China Dredging stated, “This merger is an important and exciting step for China Dredging. We expect that it will quickly lead to increased access to capital, recognition and stature for the Company in both Chinese and international markets. These factors are all critical to meeting the objectives of rapidly growing our dredging fleet and capability to provide key services essential to the development and maintenance of marine infrastructure.”
Chardan Capital Markets served as sole financial advisor to China Dredging in the merger.
Mark Xue, Head of the Beijing office of Chardan Capital Markets remarked that “The transaction with an existing SEC registrant gives China Dredging immediate standing as public-reporting company and is expected to greatly accelerate the Company’s IPO process.”
About China Dredging Group Co. Ltd.
China Dredging currently operates a modern fleet of 9 high-capacity dredgers on the eastern coast of China. These vessels are fully committed during the next year to a contractual backlog that was approximately $135 million as of June 30, 2010. The Company has commitments for additional vessels currently under construction and is seeking to lease or purchase additional equipment. New equipment would be used to further expand the company’s dredging fleet to take advantage of new project opportunities in the P.R.C. that have been extended by its blue-chip customers – multi-billion international general contractors. Revenues of the Company’s P.R.C operating subsidiary for the 12 months ended June 30, 2010 were approximately $85.5 million and the Company operated an average of 5 dredgers during that time.
Source: globenewswire, November 3, 2010