International Building Technologies Group (“IBTG”) is a building supply corporation based out of Alameda, California, with a field office in Shanghai, China. The company primarily manufactures lightweight building panels used in building construction around the world. For the last three months, the company has been awaiting a stamp of approval from the Chinese government on an agreement to purchase the China-based Wufeng Machinery Manufacturing Company (“WMMC”).
WMMC currently produces machinery required for rice and grain processing, as well as mineral refining. It is IBTG’s intent to re-tool the company’s existing production lines to facilitate production of its own building panels. The definitive agreement, signed in mid-April of this year, states that IBTG stands to acquire 88 percent ownership of WMMC for a fixed price equaling 1.6 million American dollars. This works out to be an extremely favorable transaction for IBTG, as WMMC currently has a registered capital of nearly $3.9 million.
In an optimistic interview, CEO Ken Yeung said, “We are very excited by the China Government’s approval. Today’s news brings us significantly closer to complete the acquisition of the Machinery Company. We have been working diligently over the past few months to prepare for the audit and will start the process shortly. The acquisition will be finalized upon completion of the audit in acceptance with SEC regulations. After which we can then retool the existing machineries and equipments so that they will be able to manufacture the panel machineries that INBG will utilize in its panel production factory projects, while the existing current revenue of the Wuhan Machinery Company can bring in a reasonable return for the Company.”
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