Dragon Venture has signed a definitive agreement to acquire a controlling interest in Shanghai Zhaoli Technology Development Company via a stock purchase agreement.
Dragon Venture will issue US$500,000 worth of restricted common shares as consideration to acquire 80% of Shanghai Zhaoli Technology Development Company.
Zhaoli is an information technology enterprise providing innovative technology solutions to enhance its customers' businesses. Zhaoli generated approximately US$20 million in sales for the fiscal year ending September 30, 2004. For the fiscal year 2005 ending September 30, 2005, Zhaoli generated approximately US$26 million in sales.
Zhaoli's customers include financial institutions, telecommunication companies, hospitals, supermarkets, airports, railway stations, and various government agencies.
The acquisition will be finally closed upon a proxy vote of shareholders of the parent company of Shanghai Zhaoli Technology Company, Limited by December 15, 2005.