TMK has also completed a $16m preferred stock equity financing agreement (financing agreement) with China Development Industrial Bank and ZTE Energy.
The company will purchase 100% equity stake in Dongfang Hualian for a cash payment of about $11m and 8.1 million shares of the company’s common stock.
The formal closing of the acquisition, expected by 15 September 2011, requires approval by all relevant regulatory authorities and registration of Loyal Top’s ownership of Dongfang Hualian with the Shenzhen Administration for Industry and Commerce.
On May 28 and June 20, TMK signed separate purchase agreements with China Development Industrial Bank and ZTE Energy, respectively, for the two investors to buy an aggregate of 8,000,000 shares of the company’s preferred stock convertible at $2 per share.
TMK chairman and president Henian Wu said Dongfang Hualian, with a production facility built in 2008 and 20 patents related to lithium ion battery technologies, allows the company to expand its services globally.
TMK is a manufacturer and distributor of customized rechargeable battery solutions to global consumer product companies.
Dongfang Hualian is a lithium battery producer which designs, manufactures and sells lithium batteries.
