China TMK Battery Systems Inc. (OTCBB: DFEL) cancelled the acquisition of Shenzhen Dongfang Hualian Technology Co., Ltd.
May 21, 2012 at 05:00 am
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China TMK Battery Systems Inc. (OTCBB: DFEL) signed a memorandum of understanding to acquire Shenzhen Dongfang Hualian Technology Co., Ltd. on January 4, 2010. A deposit of $3.2 million was paid as deposit and it will be returned to if Hualian fails the due diligence review or if Hualian's 2009 net profit is less than $4.1 million. China TMK agreed to conduct a legal and financial due diligence review of Hualian, and if satisfied, to enter into a definitive agreement to acquire Hualian. The due diligence process is expected to be completed by end of the third quarter of 2010.
China TMK Battery Systems Inc. (OTCBB: DFEL) signed a purchase agreement to acquire Shenzhen Dongfang Hualian Technology Co., Ltd. for $27.6 million in cash and stock on August 13, 2011. China TMK paid $11 million in cash and 8.1 million shares for $2.05 each. China TMK made an advance cash payment of $10.5 million toward the purchase price. Out of the total share consideration 5 million will be issued within 90days of the completion date and 3.1 million will be issued when Dongfang Hualian achieves a net profit of approximately $9.3 million for the year ending December 31, 2011. The transaction is subject to all relevant regulatory authorities. The formal closing of the acquisition, expected on or before September 15, 2011.
China TMK Battery Systems Inc. (OTCBB: DFEL) cancelled the acquisition of Shenzhen Dongfang Hualian Technology Co., Ltd. on May 21, 2012.
China TMK Battery Systems Inc. designs, develops, manufactures and sells nickel-metal hydride cell (Ni-MH) rechargeable batteries. The Company offers a range of batteries types, including high rate discharge industrial-high release, which includes batteries of SC size, C size, D size, F size, AA size and AAA size; standard industrial-normal release, which includes batteries of SC size, C size, D size, F size, AA size and AAA size, and commercial/consumer, which includes batteries of AA size and AAA size. Its Ni-MH rechargeable batteries are used in power applications, such as vacuum cleaners and other household appliances; cordless power tools; medical devices; light electric vehicles, such as bicycles, electric vehicles and hybrid electric vehicles; light fittings; battery-operated toys; telecommunications; traffic control and traffic lighting applications, and personal portable electronic devices.