Greater China Technology Group Ltd. (GCTG) has acquired a 66.58 percent stake in Coolpoint HK for a consideration of HK$89,350,000. The company also plans to issue 300 million new shares to help fund its expansion of Coolpoint products in mainland China. It will also change its own name to Coolpoint Energy Ltd., in order to reflect its new principle business.
Coolpoint is a company that designs, manufactures and installs energy saving equipment, primarily heat capture air-conditioning water-heaters that can produce hot water through the use of heat exhaust from air-conditioning units.
This is a technology registered with proprietary patents, which enables Coolpoint Group's customers to save significant energy costs while at the same time reduce heat emissions. The major asset held by Coolpoint HK is its 76.9 percent equity interest in Coolpoint Zhongshan, its mainland manufacturing base.
GCTG believes there is immense potential in Coolpoint systems in mainland China, in view of Beijing's recent policy decisions encouraging investment in energy conservation. It believes that the low level of profitability of the company so far was due to the small scale of the Coolpoint Group's, which have been mainly limited to Hong Kong.
GCTG is already in discussion with mainland property developers on supplying Coolpoint Group's products for their projects and has engaged a consultant in Beijing about the accreditation process to qualify Coolpoint Group's equipment as energy saving products for the mainland market.
GCTG's share price has risen 254 percent in the past five weeks.
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