Once finalized, shareholders of WUHN before the cut-off date will receive shares of SDT, therefore benefiting from all four existing subsidiaries under two fully reporting parent companies.
After the spin-off, Wuhan General Group, Inc. will focus its operation on large-scale mining cryptocurrency farms and explore other potential avenues and acquisitions to bring additional sources of income and assets to the company.
SDT, the private Canadian company, will become a fully traded public company on both the US and Canadian market exchange and will continue its operations through its subsidiaries including SDIT, SDET, and SDMT.
MONTREAL, Sept. 05, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the "Company"), a Nevada investment company focused on the industrial technology market space, announced its plan to pursue a spin-off of the Company's Canadian tech-related business, Strategic Development of Technology (SDT), Inc. to Company shareholders. The separation is a strategic move by the Company to benefit its shareholders with the enhanced growth potential of two fully reporting parent companies that span multiple fast-developing industries. The transaction is intended to take the form of a tax-free distribution to Wuhan shareholders, who are eligible to receive SDT common stock shares. The distribution ratio and Record Date will be announced at a later time.
With SDT as a standalone public company, the spin-off will ensure that Wuhan shareholders will continue to benefit from SDT subsidiaries. Following the transaction, each parent company will have distinct corporate strategies and capital allocation priorities:
- Wuhan's portfolio of businesses will be comprised primarily of industry-leading blockchain technology development (SDBT). By isolating its cryptocurrency profile, the Company is expected to generate stable growth opportunities and focus its strategy to acquire and generate business in new industries.
- The spin-off of the private company Strategic Development of Technology (SDT) into a public company will be focused on the development of batteries (SDET), electric equipment (SDMT), and Intelligence (SDIT) technology. SDT's subsidiaries have leading positions in industrial mining and energy markets throughout North America. The spin-off transaction will position these three subsidiaries to drive industry growth and initiatives in creating sustainable solutions for these markets.
Benefits of the Spin-off Transaction:
Enhances overall growth potential through two focused companies
Wuhan believes that both the growth potential and overall valuation of its businesses will be enhanced as a result of separating its current portfolio into two separate companies. The Nevada based Investment company and the Canadian Technology Development company will each be more focused and competitive as leading standalone companies in their respective industries.
Expands trading opportunities in the US and Canada
The spin-off of SDT will allow a compelling opportunity by trading on both the OTCQB and CSE markets.
Enables each company to advance differentiated investments
Wuhan believes that this transaction will yield new opportunities to generate business and provide value through new market opportunities. This enables investors to clearly evaluate the inherent value of each company's portfolio of assets and invest accordingly.
Maintains benefits of SDT's industrial technology development structure
As a fully reporting public company, SDT can continue to improve upon its unparalleled contributions to the sustainable industrial technology sector.
Next Steps:
The private company, SDT will undergo an audit during the month of September and then file its initial registration statement with the Securities and Exchange Commission to be a fully reporting company. The Company plans on listing SDT on the OTC Markets OTCQB marketplace first, then on the CSE.
Once the separation is complete, Wuhan General Group (China), Inc. will file its three years of audited financials to become a fully reporting company as well as uplisting to OTCQB; the name and ticker change will follow. The Company will continue to provide shareholders with transaction details as they arise. A new corporate website for Wuhan and SDT will go live prior to the Record Date, which will be announced at a later time.
About Wuhan General Group (China) Inc.
Wuhan General Group (China), Inc., based in Nevada, is an investment company focused in the areas of Cryptocurrency mining operations and infrastructure. In addition to its strong commitment to facilitate the development and adoption of cryptocurrency mining operations, Wuhan continues to pursue distinct investment decisions based on emerging markets that reflect the highest business, technical, and legal standards.
About SDT Inc.
SDT is a Montreal-based Canadian technology holding company whose primary business operations are conducted through its operating subsidiaries SDMT, SDET, and SDIT. The subsidiaries are engaged in the research, development, and manufacturing of industrial battery technologies and electric Material Handling Equipment (eMHE) to assist the mining, construction, and agricultural industries in eliminating greenhouse gas (GHG) emissions by moving from diesel power to a battery-powered energy source.
SDT subsidiaries are also exploring the research and application of artificial intelligence and blockchain technologies to the mining, agriculture and construction industries.
Wuhan General Group (China), Inc.
Publicly traded company (OTC Pink:WUHN)
Website: www.wuhn.org
Strategic Development of Technology, Inc.
Private company
Website: www.sdtholdings.com
For further information contact:
Public Relations
Phone: (514) 928-7368
E-mail: info@wuhn.org
Forward-Looking Statements
Safe Harbour Statement - In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company's future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency and profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found on the Company's website. The Company disclaims any responsibility to update any forward-looking statements.
Source: Wuhan General Group (China), Inc.