Sep 8 2010
SunSi Energies, Inc. (the "Company") (OTCBB: SSIE), a development-stage company engaged in the acquisition of trichlorosilane (TCS) production facilities in China, today announced that it had completed all of its due diligence on the Zibo Baokai Commerce and Trade Co. Ltd. (Baokai) acquisition started in May 2010.
The Company is now waiting for the issuance of the business license by Chinese local authorities to consummate the transaction. Baokai is located in Zibo city in the province of Shandong, China. Upon completion of this Baokai acquisition, SunSi Energies Hong Kong Limited will hold all of the distribution rights to the domestic and international markets on 100% of the TCS production from the ZBC plant, also located in Zibo, China. This transaction, which was expected to close by July 1st, 2010, has been delayed pending the issuance of a business license to operate. The Company expects to receive the license in September and begin generating revenues ranging from $1.0M to $1.5M per month.
As a result of the pending closing of the Baokai transaction, the company has discontinued its efforts to complete the JV for the purchase of the ZBC factory located in Zibo, China.
Michel G. Laporte, President of SunSi Energies Inc., stated, "Over the past year, we learned a great deal about the acquisition process and the TCS market in China. Although the Baokai transaction was delayed beyond our expectations, we are glad to finally move on. The latter transaction, giving us distribution rights over all of the 25,000 metric tons of ZBC's output, coupled with the potential Wendeng acquisition (LOI recently announced), where we would raise the capacity to 60,000 metric tons, will highly benefit SunSi's shareholders and the company. We believe that this efficient approach will allow for the maximization of our TCS production while minimizing our capital -- it just makes sense!"