Vancouver, British Columbia--(Newsfile Corp. - June 6, 2024) - China Keli Electric Company Ltd. (NEX: ZKL.H) (the "Company" or "China Keli") announces that its common shares will be reinstated for trading on the NEX Board of the TSX Venture Exchange ("NEX").
The Company recently announced the termination of its transaction with PT Hydrotech Metal Indonesia ("HMI") effective April 9, 2024. The Company initially announced a letter of intent with HMI on August 24, 2021. Shares of the company have been halted since this announcement. The Company subsequently announced the execution of a share exchange agreement with HMI and its shareholders on October 13, 2021.
As HMI was a start-up funded entirely by its shareholders, and in order to maintain progress on the transaction, pursuant to an amendment to the share exchange agreement dated March 7, 2022, the Company agreed to pay certain transaction expenses incurred by HMI and approved by the Company.
In total, the Company advanced $105,695 to or on behalf of HMI. Of this amount, $24,645 was paid to HMI's Canadian auditor on March 10, 2022, $14,585 was paid to HMI's Canadian counsel on March 10, 2022, and an additional $40,000 was paid to HMI on April 28, 2022 to pay its other transaction expenses. A final payment of US$20,000 to a HMI consultant was paid on August 17, 2022. These advances were not filed with the NEX, and were not accepted by the NEX. Of the amounts advanced, HMI has acknowledged that $79,230 is repayable at nil interest. The Company has requested repayment of this amount, though as the advances are unsecured, it is uncertain whether this amount will be repaid. The Company has also written off the US$20,000 paid to the HMI consultant.
It was a condition of closing of the transaction that the resulting issuer would list its common shares on the Canadian Securities Exchange ("CSE"). As a result, the Company planned to voluntarily delist its common shares from the NEX, and apply for a listing of the common shares of the resulting issuer on the CSE. The transaction was therefore governed by the policies of the CSE, and the Company did not file the share exchange agreement or amendment with the NEX.
The Company received CSE conditional listing approval for the resulting issuer in the spring of 2022. Capital market conditions then deteriorated quickly however, and despite the Company's efforts, the Company could not raise the necessary funds to satisfy the closing conditions and complete the transaction.
As at the end of the third quarter ended January 31, 2024, the Company had available cash of $150,231. The Company intends to seek new business opportunities with its remaining resources.
About China Keli
China Keli is currently without an active business, and is listed on the NEX Board of the TSX Venture Exchange.
For further information, please contact:
CHINA KELI ELECTRIC COMPANY LTD.
Philip Lo, Chief Executive Officer
Tel. No.: (852) 5138 1632
Email: philip3336@126.com
Neither the 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 press release.
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