Astika Holdings, Inc. Proceeding With the Nantong Dredging Acquisition
PR-Inside.com: 2014-04-24 14:02:21
* China is the Largest Dredging Market in the World and is Expanding Globally
AUCKLAND, New Zealand, (FSCwire) - Astika Holdings, Inc. (the "Company") (OTCQB: ASKH) a strategic acquisition company of service, agriculture and industrial companies from the Nantong Region in China announced today that it is finalizing the acquisition and accelerating the audit process in order to be able to bid on dredging projects in China, Australia and Africa.
Total trade between Africa and China exploded from USD 10bn in 2000 to more than USD 200bn in 2012. Africa exports mainly raw materials to China, whereas Africa imports finished products. China’s main African trading countries are Algeria, Angola, Egypt, Ethiopia, Ghana, Libya, Morocco, Nigeria, South Africa, and Sudan. To illustrate the importance of Africa, the inaugural trip of Chinese President Xi Jinping was to Congo, South Africa, and Tanzania in March 2013. In Tanzania, the Chinese President signed a deal to develop a new port at Bagamoyo (Capex - Capital Expenditure USD 10bn). Although Africa ‘only’ accounted for USD 753m or 7% of the global dredging market, it rose by a CAGR (compound annual growth rate) of 11% between 2000 and 2011.
The China and global dredging market will continue to grow due to (i) growing China and world populations, (ii) higher energy demand, (iii) increasing seaborne trade, (iv) rising size of container vessels, and (v) rising sea level. Additionally, the Chinese government is increasing its economical and political influence in Africa, Brazil, and the Middle East, which could lead to dredging orders for Nantong Dredging in the coming years. The Company believes that an acquisition of Nantong Dredging's extensive mechanical engineering experience and network throughout China will work with Astika's plans for the growing global dredging sector.
Mark Richards, the director for Astika Holdings stated, "We believe to be on track for significant growth with this initial acquisition from the Nantong Region to deliver revenue and earnings growth. The initial acquisitions sales revenues are currently projected at $31.91M with an EBITDA of $14.73M and a Net Profit of $9.7M. The acquisitions have the potential to accelerate and triple revenues and earnings growth since China is the largest dredging market in the world with more than 29% of the $15bn total global dredging world market (*according to the International Association of Dredging Companies - IADC). Nantong Dredging is an important part of Astika’s ongoing strategy to add value through successful project development and opportunistic high growth sector acquisitions with efficient operations, while maintaining a low risk profile through project diversification, astute financial management and operations in secure jurisdictions. We appreciate the support and are excited to lead the Company and its shareholders into the future."
The completion of the acquisition are dependent on, among other things, the completion of due diligence satisfactory to the Company, and the completion of the PCAOB audit under US GAAP. The parties have agreed that the acquisition will not engage in any negotiations or discussions with other potential acquirers and have also agreed to maintain the confidentiality of all of the acquisitions in order to protect the acquisition's competitive interests, and the interests of its many customers and employees, during the period of the acquisitions. Astika Holdings is in the process of making the necessary filings which will be filed on the US SEC EDGAR system providing the specifics of developments and intends to position the Company for an eventual up-listing to a higher exchange such as the NASDAQ BX or NASDAQ, once the Company meets the financial status and market share price for up-listing qualification.
Astika Holdings, Inc. (OTCQB: ASKH) ( nantongventures.com
Astika Holdings is focused on a variety of strategic acquisitions in service, agriculture and industrial companies to compliment and grow Astika Holdings, Inc.'s business. The Company is positioning to capture the next wave of growth companies from Asia. Astika Holdings is focused on the Nantong region of China and is positioning to negotiate with growth companies from the Nantong region. Nantong is known as a "Pearl of the River and Sea," ideally situated near the mouth of the Yangtze river with a rich and diverse history dating back to the Chinese Han Dynasty. Inhabitants first lived in the region 5,000 years ago because of its abundant natural resources and access to the Yangtze river. Nantong has a national reputation of "the First Window on the Yangtze River" and is one of the China's prized national tourist centers. As the centerpiece in the Yangtze Delta Economic Zone, Nantong has enjoyed rapid economic growth and increasing foreign investments. The city is listed on the China's Top 100 Counties (county-level cities) for its strong economy. Nantong is one of China's first fourteen coastal cities open to international trade. Nantong is poised for accelerated economic growth with new bridges over the Yangtze River connecting the Nantong region to the Shanghai metropolitan region. With the development of the Rudong Yangkou Harbor Nantong offers the only natural deep water harbor in central China's coast with access to China's largest markets. Nantong's rich history of economic prosperity and growth converge with national modernization continue to make Nantong a major center for economic development in China. Astika Holdings intends to be a high growth company focused on adding value through successful project development, efficient operations, and opportunistic acquisitions while maintaining a low risk profile through project diversification, astute financial management and operating in secure jurisdictions.
Forward-Looking Statements - This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and such Forward Looking Statements are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the viability of the company's business plans, the effect of acquisitions on our profitability, the effectiveness, profitability, and the marketability of the Company's products; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, management cannot assure the public that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
INVESTOR RELATIONS CONTACT
ASTIKA HOLDINGS, INC.
Contact: Mark Richards, Director
Tel: 64 9 889 3327
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Source: Astika Holdings Inc (OTCQB:ASKH) www.nantongventures.com
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