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Slide #77. China Auto Logistics Inc. — Tianjin Automall
China Auto Logistics Inc. (CALI)
In line with the Company's strategy to expand its higher margin auto-related services businesses, discussions and due diligence have continued with respect to the non-binding Letter of Intent signed in May to acquire and operate the Airport International Automall in Tianjin. The Company reported it made a refundable deposit of $16,122,531 U.S. dollars (RMB 100 million) on the acquisition in June. In the event the acquisition is completed, it anticipates a purchase price of between $65 million (USD) and $130 million (USD) for the Airport International Automall and the land use rights on which it is situated. Additionally, the Company believes it has the informal backing of banks with which it has engaged in discussions regarding mortgage financing to acquire the automall. It believes this financing could be coupled with cash from the Company's operating cash flow and/or installment payments to the seller which would not entail any dilution of the Company's equity to complete the acquisition.
China Auto Logistics is a holding company. Through its subsidiaries, Co.'s principal businesses include sales of imported automobiles, which Co. act as a general agent and wholesaler; financing services related to imported automobiles, which include letter of credit issuance services, purchase deposit financing, and import duty advance services; and other services including automobile information websites and advertising services (www.at188.com and www.at160.com), logistics services related to the automobile importing process and other automobile services, such as assistance with customs clearance, storage and delivery services.
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Hold (2.00 out of 4)
(ranked higher than approx. 100% of all stocks covered)
Based on Zacks ABR data;
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