Tickers: PINX:CWNHF, XTSX:CNH
Tags: Manufacturing
VANCOUVER, BRITISH COLUMBIA / TheNewswire / January 12, 2018 - Crownia Holdings Ltd. (TSX-V: CNH; OTCQB: CWNHF) ("Crownia" or the "Company") is pleased to announce that the Company through its wholly owned subsidiary, Jinsili (Hong Kong) International Steel Holdings, Co., Ltd. ("Jinsili HK"), has entered into an 24-month-term Operations Advisory Agreement (the "Agreement") with a non-arms' length party named Shenzhen Time e-Supply Chain Management Co., Ltd ("TSC") for the purpose of improving and enhancing revenue growth opportunities by assisting the Company with strategic sales planning, and developing sustainable sales channels and customers through an online steel trading platform (the "Platform") owned and operated by TSC, which the management of the Company believes that the revenue of the Company would be positively impacted in long term by entering into the Agreement.
Based on the Agreement, TSC will provide numerous services to assist the Company to reach certain sales targets ("Targets") for the period of agreed timeline by both parties in exchange for a total consideration of 6.8 million Chinese Yuan ("Consideration"), which is equivalent to around 1.3 million Canadian dollars. Among the Consideration, 6.5 million Chinese Yuan is deemed as a comprehensive fee (the "Comprehensive Fee"). If TSC fails to deliver the Targets for the period of the agreed timeline described in the Agreement, the Company shall have the right and be entitled to retrieve the Comprehensive Fee from TSC based on the agreed calculation in the Agreement within 60 calendar days, and TSC shall also provide a financing commitment to the Company of up to 6.5 million Chinese Yuan (the "Financing") and the Company shall have to right to access the Financing within 30 calendar days.
As a specialty steel trading company, Crownia provides value-add by identifying suitable suppliers for products that best suit customer needs, establishing distribution centers in optimal locations, and providing superior sales and after-sale services to customers.
On behalf of the Board of Directors,
FOR FURTHER INFORMATION PLEASE CONTACT:
Xizhou Tong - Chairman and CEO
1-604-688-9588
xizhou.tong@crowniaholdings.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Copyright (c) 2018 TheNewswire - All rights reserved.
