Trophy Resources signs letter of intent for a reverse merger with Jiangsu Donghua Textile
Trophy Resources, Inc has announced that it has signed a non-binding letter of intent which contemplates a proposed reverse merger with Jiangsu Donghua Textile Co. Ltd a privately held company.
Under the terms of the LOI, Jiangsu Donghua Textile Co. Ltd would acquire Trophy Resources, Inc. pursuant to the contemplated merger exchange agreement. Following the closing of the anticipated merger Jiangsu Donghua Textile Co. Ltd would emerge as the surviving company with a name and symbol change to follow. The merger is subject to a number of conditions, including the signing of a definitive merger agreement by 30th September 2018.
Jiangsu Donghua Textile Co. Ltd is one of China's finest textile companies and has been honoured as Jiangsu Provincial Quality Trusted Enterprise, Harmonious Textiles Enterprise, Technology Innovation Enterprise, Top 50 Enterprises in Yancheng City, Top-20 private enterprise and Five Star Enterprise, Excellent Enterprise and leading company for the industrialisation of agriculture. The company specialises in medium-to high-grade pure cotton yarn, colour cotton yarns, chemical fibre yarns, cashmere yarns and fibre blended yarns.
The company was established in December 2000 and Occupies 50,000 square meters, employs over 1800 employees with fixed assets of 350 million RMB that equals to around $51 million. It has a consistent track record of delivering revenue and earnings growth with close to $40 million in gross revenue and with significant profitability in 2017.
Trophy Resources CEO Joseph Canouse commented: "We are delighted to enter this letter of intent with Jiangsu Donghua Textile Co. Ltd. We consider the merger to provide the best solution for our shareholders. It has been a rough time at Trophy Resources, Inc. with growing concern in recent months. I would like to thank Mr Shouxiang, the president of Jiangsu Donghua Textile Co. Ltd for advancing the transaction to this stage."