DALLAS (July 30, 2007) – Several companies on the bulletin boards have announced intents and completions of mergers and acquisitions this morning. Buzz generated from news surrounding mergers and acquisitions generally help companies and their stock prices. Along with the solid start from the bigger markets this morning, confidence is most likely up surrounding these announcements.
Early this morning around 7 a.m., Ecology Coatings Inc. (OTCBB: ECOC), which is the global leader in the development of nano-enabled, ultra-violet (UV) curable, clean technology coatings, announced that it completed its reverse merger with OCIS Corporation last Thursday.
The completion of this merger has helped increase the stock price of Ecology which has increased 10 cents, which is only 2 percent, this morning to bring the price to $4.90.
“The successful completion of this transaction, coupled with Ecology Coatings’ common stock listing on the OTC Bulletin Board, is a major milestone for us. Our listing on the OTCBB will provide us with access to new investors, new sources of capital with which to grow our company, and greatly enhance our visibility and market awareness of our outstanding line of leading-edge, clean technology coating products,” stated Richard D. Stromback, chairman of the board of directors for Ecology Coatings, in a press release earlier.
China Holdings Inc. (OTCBB: CHHL) announced it has executed a definitive agreement to acquire 100 percent of Hunan Zhangjiajie Chalinhe Electric Power Co. and its hydropower plant. The acquisition is expected to be completed following legal due diligence of Hunan Zhangjiajie, which will include the review of the company’s audited financial statements to ensure they conform to US GAAP rules from the third quarter 2005 through the second quarter of 2007.
The stock price has also been a positive reflection of this news as it increased 14 percent to 4 cents today. The company’s objective is to achieve long-term capital appreciation through the investments in other companies such as Hunan Zhangjialie.
In other news concerning acquisitions, Lucian Development LLC, a New York based company, and City Capital Corp. (OTCBB: CCCN) have entered into a preliminary agreement for Lucian to purchase City Capital’s entire real estate rehabilitation portfolio and other properties.
“Lucian and our investors already have a position in many of these properties. By taking over direct ownership of the entire program, we believe we will be able to enhance the return for our investors even more. Knowing that City Capital will continue to manage the developments was critical to making this a workable, win-win combination for both companies. Based on current figures, and by ramping up the Credit-Investor program that already has a waiting list of investors for future properties, we expect to show net profits of well over $10 million each year,” Lucian’s Chris Parrish said in a statement earlier.
City Capital shares have increased 5 percent, or 1 cent, to 22 cents after early trading this morning. According to the announcement, the parties are currently working out the details of the final definitive agreement expected by early August.
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