Key Developments For China Direct Industries, Inc.
China Direct Industries, Inc. (CDII.O) (Consolidated Issue listed on NASDAQ Global Market)
China Direct Industries, Inc. Announces Letter of Intent To Acquire Additional Magnesium Production Facilities; Intends To Sell Majority Interest In Pan Asia subsidiary
China Direct Industries, Inc. announced that it has entered into a letter of intent with Taiyuan Yiwei Magnesium Group, LTD., an entity controlled by Yiwei Huang, an executive vice president and member of the China Direct Industries Board of Directors, to acquire the remaining interest in its Chang Magnesium, Golden Magnesium and Baotou Changxin Magnesium subsidiaries as well as acquire certain additional facilities owned by Yiwei. The Company also intends to sell its majority interest in its Pan Asia subsidiary. The Company has begun preliminary discussions with several potential buyers and will account for the subsidiary as discontinued operations until such time as a sale is completed. In addition to the acquisition of the minority stake in China Direct Industries magnesium subsidiaries owned by Yiwei Magnesium, China Direct Industries is seeking to acquire up to five additional magnesium facilities from Yiwei Magnesium. Financial terms of the transaction were not disclosed.
China Direct Industries, Inc. Commences Branding Efforts For Its Magnesium Segment With Newly Formed Subsidiary International Magnesium Group
China Direct Industries, Inc. announced that it has begun its efforts to brand its magnesium operations as the International Magnesium Group. In the second quarter of 2009 the Company formed International Magnesium Group, Inc. (IMG), a Florida Corporation, as a wholly owned subsidiary of China Direct Industries to be used to consolidate its magnesium holdings under one corporate entity and to create an identifiable brand name to unify marketing efforts for these operations. China Direct Industries intends to eventually consolidate its ownership interests of Chang Magnesium, Golden Magnesium, Pan Asia Magnesium, and Baotou Magnesium under IMG. The formation of this wholly owned subsidiary will allow China Direct Industries to position itself as a leading global supplier of pure magnesium as it seeks opportunistic acquisitions in this industry.
China Direct Industries, Inc.'s Subsidiary CDII Trading And China Armco Metals, Inc. Enter Into Strategic Partnership Agreement For Metals Procurement
China Direct Industries, Inc. announced that its wholly owned subsidiary, CDII Trading, Inc. (CDII Trading) has entered into a strategic partnership agreement with China Armco Metals, Inc. (Armco). Under the terms of the agreement CDII Trading will assist Armco in procuring various metals including copper ore, manganese ore, chrome ore, and iron ore for distribution in China. As part of this relationship CDII Trading is in the process of arranging an initial shipment of copper ore sourced out of Zambia, Africa.
China Direct Industries, Inc. Signs Letter Of Intent To Form New Heavy Truck Parts Manufacturing Joint Venture
China Direct Industries, Inc. announced that it has entered into a letter of intent to form Jinan Zhongsen Machinery Manufacturing Company, Limited (Zhongsen Machinery) as a foreign invested enterprise. Zhongsen Machinery is a heavy truck parts manufacturer in the Peoples Republic of China. Under the proposed terms of the letter of intent, China Direct Industries will invest approximately $3.3 million over the next two years to obtain a 45% interest in the joint venture. The letter of intent is intended to be non-binding and is subject to all necessary due diligence, the Company's Board of Directors' approval and execution of definitive agreements. Management anticipates closing the transaction sometime before the end of 2009. Management of China Direct Industries plans to assist Zhongsen Machinery with its goal of applying for listing its common shares on a stock exchange in the Peoples Republic of China by 2012.
China Direct Industries, Inc. Launches CDII Trading, Inc.
China Direct Industries, Inc. announced that it has formed CDII Trading, Inc., a wholly owned subsidiary to engage in the global purchases and sales of industrial commodities for China Direct Industries and its subsidiaries and client companies.
