IBMC China AG
IBMC China AG: Milestone reached with Merger
IBMC China AG / Merger/Alliance Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- IBMC Enters Definitive Agreement to Merge with BBS Shanghai, China June 20, 2008 – IBMC CHINA AG ('IBMC') has entered into a definitive agreement to acquire 51% of BBS for one million IBMC shares. BBS owns and operates 60 brands free standing stores for a total of 6,000 square meter retail space within a one million square meter Zhong Huan Bai Lian Mall. With this merger, IBMC now operates a total of 88 stores within 4 months operation in China. The appraised value of BBS 51% ownership is approximately 300,000 to 350,000 Euros based upon the values of IBMC shares at 0.30 Euros per share. BBS has projected 2008-2009 annual net revenue of 5.5 million RMB. Frank Yuan, CEO of IBMC stated 'Organic growth for a start up company in China is not easy due to the good locations with fair rent being difficult to find. Merger and acquisition of retail brand operations like BBS will be IBMC’s immediate strategy to grow and meet the target projections.' Mr. William Ren, CEO of BBS says, 'We are so happy to merge with IBMC. It is a better deal for us in long run taking one million IBMC shares instead of cash. IBMC foreign brand contacts and resources will improve BBS retail stores performances. IBMC wait listed franchisees are great resources to tap for BBS store openings. We sincerely believe with our retail relationship and IBMC development plan, this merger will make BBS grow in revenue much faster, and then the valuation of shares in IBMC will appreciate as well by our joint efforts of performance down the road.' Frank Yuan also added 'This merger is a win-win situation for both parties. IBMC will grow much faster through the mergers and acquisitions and Mr. Ren will benefit by the long term price appreciation of IBMC stock. The closing of merger needs to wait till China Foreign Affair Department approves the valuation of 51% of BBS prepared by third party business appraiser, which might take 3 – 4 months of time' ABOUT BBS BBS took 6,000 square meter retail space from one million square meter Zhong Huan Bai Lian Mall, then open 60 free standing stores within this area to work as the factory direct outlet concept. Factory direct outlet does not work in far away areas and can only work within the inner-city in China due to most Chinese do not own their own car. The factory direct outlet branded merchandise with discount value and price within the inner city is great and new concept which definitely will work in China. BBS currently has 60 stores, 15 of which are athletic brands such as Nike and Reebok. 45 stores are divided into women’s, men’s and children’s fashion, among them are Playboy, top Chinese local brand and some IBMC licensed brands. BBS manages all 60 stores and controls all sales proceeds. Each store/brands needs to decorate, build, stock with inventory, and pay sales clerk payroll. BBS collects all the sales revenue from the stores, and then pays 70% of proceeds received to the individual stores operator. BBS keeps 30% from sales as profit and manage fees. BBS under the law is the owner of these 60 stores and gets the inventory for the stores on consignment basis. Not only the factory direct outlet within inner city is great concept, BBS operations does not have too much risks, and shift the unsold merchandise risk to individual store operator. Any free standing store or brand that does not meet pre-agreed monthly sales volume, BBS has the right to replace them with other brands or other stores. In essence, BBS is the owner of the 60 stores although it may sound like BBS is the landlord. ABOUT IBMC CHINA AG (IBMC) http://www.ibmcchina.de IBMC purpose is to open multiple International fashion brands franchise stores all over China. Acting as the master licensee for international fashion brands and retailers, and leveraging its brands recognition, designs, marketing experience and skills, IBMC will open multiple stores for each brand. IBMC stores will either be company owned or franchisee operations to penetrate China, the fastest growing economy in the world. These stores may be in the form of free standing, independent stores or stores/corners within large department stores. Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions at home and abroad, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed. Jerome Yuan Director of Operations +8621-623-3101 e-Mail: info@ibmcchina.com 18.06.2008 Financial News transmitted by DGAP ----------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found