WEB NEWS Acquisition Activity
NEW YORK, NEW YORK--(Marketwired - May 9, 2013) - Sino Cement, Inc. (OTC PINK:OCEE) Mr. Marco Garduno Chavez, Director, announced today that the Company has entered into an additional Agreement with Macau Live Gaming, S.A., Costa Rica, to acquire the remaining 30% of the shares of Macau (www.macaulivegaming.com), a development which is anticipated to bring new revenue streams to Sino, and enhance its stated policy of acquiring real estate properties and projects.
On April 29, Sino announced that it had entered into a Letter of Intent to acquire 70% of Macau for $ 6,000,000.00 in Convertible Preferred Shares of Sino. Macau is a company engaged in Online Gaming with strategic focus clients in Asia, the Pacific Rim, India, Australia, Europe and Latin America. As previously announced, Macau is also engaged in identifying and purchasing boutique hotels and Casinos in Costa Rica, and is in an advanced stage of negotiations to acquire a Five Star Hotel property in a San Jose, Costa Rica suburb. Macau has recently negotiated strategic alliances with established online operators in Costa Rica whose scope is worldwide via the Internet
Mr. John Lambert Uhl, recently named Director of Macau Live Gaming, S.A., has confirmed the new agreement with Sino, by saying: This merger with the public company is expected to generate a much stronger capital base for Macau's operations. Mr. Uhl resides in Costa Rica, but previously was an executive with Drexel Burnham Lambert, Century City, Los Angeles, California. He holds an MBA from the University of California.
Both companies are working diligently to complete all regulatory and legal requirements for the proposed acquisition of Macau's shares and the resulting merger.
Reverse Merger Activity
On February 21, 2011 Sino Cement became a public entity via a
reverse merger transaction.
Company Snapshot:
Engaged in the business of producing cement in the province of Shaanxi.
We currently have two cement production lines located in Shaanxi province, with a total annual production capacity of 1.6 million tons. According to Digital Cement Net (www.dcement.com), a website operated by the China Cement Association which provides information on China's cement industry, we were the sixth largest cement producer in Shaanxi province by production capacity as of December 31, 2009. Our primary production line employs the NSP technology, which requires less energy to produce cement and is more environmentally friendly than non-NSP technologies. In order to meet the fast-growing market demand for cement products in Shaanxi province, we are constructing a new production line at Qinshan Building Materials Industrial Park in Shaanxi province in two phases. Phase I and Phase II of the new production facility at Qinshan Building Materials Industrial Park will each have an annual planned production capacity of 2.1 million tons for a combined total of 4.2 million tons. Upon the commencement of operations of Phase I and Phase II, our total annual production capacity will be 5.8 million tons. We intend to further increase our production capacity through acquisitions of suitable target companies or assets.
Limestone is the principal raw material used in our production of cement. We have obtained mining rights to two limestone quarries, which are located near our current and expected future production facilities. Our easy access to limestone reserves provides us with a secure and stable supply of limestone at low transportation costs. We have sufficient reserves of limestone to meet the current production requirements of our existing production facilities for at least 20 years, based on government surveyors' reports on the amounts of our limestone reserves, the annual excavation limits specified in our mining licenses and our current production requirements. We use coal as fuel in our production process, and it represents one of the largest components of our cost of sales. We have convenient access to large coal mines in Shaanxi province, which ensures that we have an abundant supply of coal at low transportation costs.
Industry Snapshot (From the company)
The increase in popularity of NSP technology is partly due to significant investment cost reduction after PRC manufacturers mastered the equipment manufacturing skills and produced it locally. The high production efficiency and reliable cement quality from NSP production and rising energy cost have also contributed to the shift to this new technology. The PRC government has also been promoting the NSP technology and issued a series of regulations intended to phase out obsolete production technologies.
The cement industry in the PRC is highly fragmented. The government aims to promote corporate restructuring and consolidation at regional levels through gradual integration of operation and the optimization of resources allocation in order to concentrate the production effort and enhance competitiveness of cement producers generally. In recent years, major cement producers in the PRC have started the industry consolidation process in various parts of the PRC via mergers and acquisitions. The aim is to increase their market share and competitiveness.
Post Merger Share Calculation :
15,968,617: Pre reverse merger outstanding shares
14,718,590: Shares cancelled as part of the Share Exchange
14,250,000: Newly issued shares of Common Stock
GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: 15 ,500,027
Financial Snapshot : April Year End
Since FY2010, government's projects had been reduced and demand for cement decreased. On the other hand, after the earthquake, many cement companies were built up in Shaanxi province, the market became more competitive. Thus, the Company began to sell cement at lower price, provide sales reward and improve products' quality to attract customers. The Company adopted high-quality coal from North Shaanxi, about RMB200 (US$30) per ton, which is more expensive than coal used before, in production.
Fiscal 2010 vs. 2009
Revenues:$59.9 million vs $55.5 million
Net Income: $12.4 million vs. $11.4 million
Six Months fiscal 2011 vs 2010
Revenues: $30.5 million vs. $37.5 million
Net Income: $5.4 million vs. $11.4 million
Pro Forma Valuation : using current price of $3.98 and new share count
Trailing EPS: $0.35
Trailing P/E: $11.4
