BEIJING, Sept. 8 /PRNewswire-FirstCall/ - MonArc Corporation www.monacorporation.com (Pink Sheets: MONA - News) is pleased to announce that it has closed the acquisition of EEIGI Ltd., a Hong Kong based direct marketing company with over 7,000 representatives.
EEIGI manufactures and sells a proprietary line of all natural Health and Beauty Aids (HBA) through a direct marketing distribution business model. These are developed and shipped worldwide from the Company's Canadian offices and manufacturing centre. Importantly, EEIGI has put together a significant network of representatives, and enjoys top-line revenue in the millions of dollars with an asset base of roughly $15 million.
HBA is one of the most profitable sectors based on gross margins of products sold. The most significant costs most HBA firms have is the cost of marketing and advertising, including package design. Using a direct marketing business model similar to Amway and Avon, EEIGI has reached a level of critical mass with enough distributors to generate profitability on its product line. The Company is now poised for accelerated growth, given the organic growth model of direct, multi-level sales and the marketing support the Company can now dedicate to building on an already successful business model. It is targeting a total of 18 countries to augment its core sales in China.
EEIGI is currently developing an English version of its website, which can be found at www.eeigi.com. Initial development has begun, however the quality of the translation is relatively inconsistent. One of the first tasks MonArc will undertake is to ensure that the English version of the website accurately depicts the EEIGI's products and services, and complies with North American, and eventually, European regulatory requirements.
Moving forward, EEIGI will be the primary operating business within MonArc. In keeping with the Company's new business model as a Small Cap Boutique Investment Group, MonArc will work with EEIGI management to begin to create awareness of EEIGI as a public company. We will be tasked with creating investor awareness and building investor interest in EEIGI. Our advisory services will include helping to grow the Company to the next level with sound financial planning and appropriate corporate strategies. When EEIGI is ready, MonArc management intention is to spin it off as a separate public company. Obviously, MonArc shareholders will be rewarded with dividends in the new company. It is also planed or anticipated that MONA investors will have the opportunity to see their investment grow through the addition of stock warrants or options once EEIGI stands on its own.
In other Company news, MonArc is continuing discussions regarding the sale of its Hubei Chuguan Industry Co. Ltd.position. This is an environmental services company active in the oil sector, as previously announced. Our representatives in China are walking Hubei Chuguan executives through a similar approach and spin off their Company as the second major project in the upcoming months. Due diligence is proceeding on course, and we are working with management to develop the final framework and timetable for this project.
MonArc is also continuing work with PP365.com an online gaming company (the current operating company in MONA) and Innotrek, (a broadband Hotel ISP) who have been making excellent progress in their respective businesses, but are not as mature as companies as EEIGI and Hubei Chuguan. Management is in discussion with several interested groups for these asssets.
MonArc CEO, Mr Yong Chan advises; "We feel that MonArc is on the verge of significant success. Special gratitude to Mr.Garr Winters MONA X CEO and the current Secretary and Strategic Advisor has been instrumental and pivotal in making all of this happen. He has been working overtime in the background to see this transformation and sucess come to a fruition. Not to take anything away from PP365 or Beijing Innotrek Technology Co., but EEIGI and Hubei Chuguan are on a different level in terms of maturity of the Company, scale of operations, revenue streams and profitability. However, we really like what these younger companies are achieving and have every confidence that they will have the ability to capitalize on their respective business opportunities and go on to great success within our company, and as individual public companies down the line.
Our work with them has been vital to MonArc as we have reshaped our corporate business model over the last year. We are extremely well positioned to continue to identify additional candidate companies in China who are already successful but need the benefit of our experience and guidance to capitalize on the benefits of being publicly traded companies. Shareholders can expect to receive an ongoing series of rewards in a form of cash or stock dividends and other instruments to leverage the potential for increased value of these companies; as we introduce them to public markets and transition them to trade under their own names".
The common shares of the Company are currently listed in the USA (symbol MONA) and the Frankfurt Stock Exchange (Xe:GZWM)
Safe Harbour Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.
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