About a year ago, Henan Shuncheng Group Coal & Coke Company Limited engaged USA Wall Street Capital United Investment Group as its advisor, seeking financing by listing on the US stock market. On May 14, 2010, an agreement was announced with Birch Branch Inc. (OTCBB: BRBH) to bring Henan Shuncheng public via a reverse merger.
The share exchange agreement provides for the acquisition by Birch Branch of 100% of the issued and outstanding capital stock of Shun Cheng HK. Upon completion of the share exchange, the Shun Cheng HK shareholders will own approximately 95% of the issued and outstanding shares of Birch Branch common stock and Shun Cheng HK will become a wholly-owned subsidiary of Birch Branch.
Shun Cheng HK produces coke, refined coal and coal byproducts in Henan Province in the central region of China. The company’s current principal products are refined coal and metallurgical coal. It also sells medium coal and coal slurry (which are byproducts produced from its refined coal process), tar, ammonium sulfate, crude benzol and coal gas (which are byproducts produced from its coke manufacturing process).
The company intends to substantially increase its coke production capacity. In order to do this, the company is seeking to raise $70 million. To aid in this endeavor, it intends to apply for listing on the NASDAQ market and have a market capitalization of more than $500 million. For more information, investors can refer to Birch Branch’s periodic reports filed with the SEC at www.sec.gov.
Let us hear your thoughts below: