Intermost Corporation (IMOT.OB) announced this week that on January 6, 2005 its wholly owned subsidiary, IMOT Information Technology (Shenzhen) Ltd, received approval from the government of Shenzhen of its acquisition of 80% of the capital stock of Hainan Concord Financial Products Development Co., Ltd. ("Concord") from two of Concord's three stockholders.
The purchase price for the stock was CNY7.6 million (approximately US$920,000) which will be paid through the issuance of 5 million shares of IMOT common stock.
Concord's principal business will be to issue and manage multifunction membership and credit cards, commonly known as "smart cards," for individuals who participate in the private equity exchange in Hainan, China. Concord will also provide financial institutions with research and development services for their financial products and instruments. Concord has an exclusive agreement with Hainan Exchange Center Non-Public Company Registration Co., Ltd. ("Registration Co.") to issue multifunction membership and credit cards to its more than 400,000 members.
Mr. Andy Lin, CEO of Intermost, commented, "We are pleased to have the Concord acquisition finalized. Concord has the potential to generate issuance fees and annual fees from more than 400,000 cardholders. We believe that there will also be earnings potential from Concord's planned promotion and development of financial products and services in the Hainan Special Economic Zone and China."