(via TheNewswire)
Vancouver, British Columbia / TheNewswire / November 25, 2016 - Crownia Holdings Ltd. (TSX-V: CNH; OTCQB: CWNHF) ("Crownia" or the "Company") is pleased to announce that, further to its news release of October 3, 2016, it has received all applicable approvals and completed the acquisition of Zhongwan Co., Ltd ("Zhongwan") by acquiring all of the issued and outstanding securities of Zhongwan from its shareholders ("Transaction") through its wholly subsidiary, Jinsili (Hong Kong) International Steel Holdings Co., Ltd. ("Jinsili HK").
The Company issued 6,933,673 common shares (the "Consideration Shares") to the shareholders of Zhongwan to acquire all of the issued and outstanding securities of Zhongwan, which resulted in Zhongwan becoming a wholly-owned subsidiary of Jinsili HK. The Consideration Shares were issued at a deemed price of CAD $0.49 per share for an aggregate purchase price of CAD $3,397,500. The Consideration Shares are subject to a 4-month statutory hold period expiring March 26, 2017. The issuance of the Consideration Shares does not result in any person or company who was previously not an Insider becoming an Insider of the Company.
"We are pleased to complete this strategic acquisition," commented Herrick Lau, CEO of Crownia. "By completing this acquisition, Crownia is able to vertically integrate its upstream supply chain and enjoy the benefits from improved operating efficiency."