This Letter of Intent involves
Title: Aoxin Tianli Group, Inc. Signs Letter of Intent to Acquire Hainan-Based Specialty Black Hog Farm Operator
Industry: Fish/Livestock Sector: Consumer/Non-Cyclical
Aoxin Tianli Group, Inc. Signs Letter of Intent to Acquire Hainan-Based Specialty Black Hog Farm Operator
July 19, 2016
WUHAN CITY, China, July 19, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. ( ABAC ) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, today announced that its wholly-owned subsidiary, Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. ("Fengze"), has entered into a Letter of Intent (the "LOI") to acquire a majority stake in Hainan Chengmai Zaohuaxiang Hog Industry Co., Ltd. ("Zaohuaxiang"), a high-end specialty black hog farm operator based in Hainan Province with annual production capacity of 30,000 hogs.
Pursuant to the LOI entered into on July 18, 2016 among Fengze and the three shareholders --Sheng Yang, Jun Yang, and Haicheng Pan, who collectively own 100% of the equity interest in Zaohuaxiang, Fengze will acquire a 51~60% equity interest in Zaohuaxiang for a combination of cash and stock (the "Transaction"). The Transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of definitive agreements, the approval of the Company's Board of Directors, and the satisfaction of other customary closing conditions.
Mr. Wocheng Liu, Chairman and Co-Chief Executive Officer of Aoxin Tianli, commented, "Zaohuaxiang is a well-known consumer brand with its specialty black hog pork products currently sold through both retail outlets and the internet, including China's leading e-commerce platform, Taobao.com. We are excited about the opportunity as we believe it represents a unique opportunity for us to expand our geographical outreach beyond the Hubei market while augmenting our specialty back hog and pork products portfolio. Upon completion of the Transaction, we int