Disclosure of an inside information according to Article 17 MAR

Euro Asia announces a shift of focus with the acquisition of RMB 180 million of assets in the PRC

  • Treasury shares to be released for acquisitions after fulfillment of contractually stipulated profit

Hong Kong, SAR Peoples' Republic of China, 24 September, 2019

Euro Asia Premier Real Estate Company Limited (JT9; ISIN: VGG3223A1057) is pleased to announce a shift in focus with the acquisition of RMB 180 million of assets, split between three different asset bases. The identification of these assets was initiated by the Company's new board member Mr. Quan Hu.

These transactions are described as followed:

RMB 50 million for a digital direct sales company specializing in health care products
  • Contractually stipulated profit of no less than RMB 15 million per annum for 3 years.
  • Purchase payment of RMB 50 million will be issued as a non-interest bearing, non-demand, promissory note placed into escrow.
  • The redemption of the promissory note is subject to financing from treasury common stock.
  • The release of the promissory note and/or common shares issued from treasury is done annually and is based on contractual performance targets.
  • Subject to the achievement of performance targets, RMB 15 million will be released after the first and second year, and RMB 20 million will be released after the third year.
RMB 30 million for real estate asset
  • Contractually stipulated profit of no less than RMB 30 million per annum for 2 years.
  • Purchase payment of RMB 30 million will be issued as a non-interest bearing, non-demand, promissory note placed into escrow.
  • The redemption of the promissory note is subject to financing from treasury common stock.
  • The release of the promissory note and/or common shares issued from treasury is done annually and is based on contractual performance targets.
  • Subject to the achievement of performance targets, RMB 15 million will be released after the first and second year.
RMB 100 million for 4 floors of a newly completed commercial building
  • Contractually stipulated after tax lease income of no less than RMB 5 Million per annum for 3 years.
  • Purchase payment RMB 100 Million will be issued as a non-interest bearing, non-demand, promissory note placed into escrow.
  • The redemption of the promissory note is subject to financing from treasury common stock.
  • After 3 years, in addition to contractual performance targets being met, the valuation of asset of must be no less than RMB 100 Million before RMB 100 Million will be released from escrow.

The decision for acquisition of these three parcels of assets is based on a combination of contractually mandated cash flow and asset value.

While two of these three assets are real estate based, the Company will also embark in digital commerce by acquiring an online sales company, thus entering one of the largest growth industries in the PRC and the world. The Company will also seek out other acquisition opportunities which fit into its growth strategy.

 

* 1 Euro = 7.8285 RMB

 

Contact:
Schwarz Financial Communication
Frank Schwarz
Tel: +49 611 580 2929 0
Schwarz@schwarzfinancial.com

About Euro Asia
Euro Asia is a BVI registered company, active in demand driven development of real estate projects in the Shandong and Tongshan area of the People's Republic of China. The Company operates locally through its subsidiaries. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow into real estate and digital commerce sectors.
For more information, please visit www.eu-asia.net

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