Trophy Resources, Inc. Signs Letter of Intent for a Reverse Merger with Jiangsu Donghua Textile Co. Ltd
Alpharetta, Georgia--(Newsfile Corp. - September 10, 2018) - Trophy Resources, Inc. (OTC Pink: TRSI) today announced that it has signed a non-binding letter of intent (LOI) 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 September 30, 2018.
Jiangsu Donghua Textile Co. Ltd is one of China's finest textile companies and has been honored 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 industrialization of agriculture. The company specializes in medium-to high-grade pure cotton yarn, color cotton yarns, chemical fiber yarns, cashmere yarns and fiber 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 USD. It has a consistent track record of delivering revenue and earnings growth with close to $40 million USD 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."
this news release may include "forward-looking statements" regarding Trophy resources, Inc. business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Trophy resources, Inc. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Trophy resources, Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.