On April 17, 2018, Mirai China Holdings announced that the company, the wholly-owned subsidiary of the company, Guanshi, and IGE entered into a joint venture agreement.
Based on this, the company and IGE subscribed for 48 shares and 51 shares of the Crown for US$12.25 million and US$12.75 million respectively. After the completion, the company and IGE held 49% and 51% of the issued share capital of Guanshi. As a subsidiary company, its financial statements are no longer integrated into the group's audited consolidated financial statements.
According to the announcement, the Guanshi Group does not have any operations. Its business will be to establish and operate a renewable energy plant to convert used plastics into automotive gasoline and diesel fuel; then the company and IGE will be involved in other businesses.
The initial investment of the Guanshi Group is US$25 million, which is intended to be used as Capital Global Capital’s investment, including the cost of fixed assets, ie the acquisition cost of renewable energy plant construction land or the rental cost of the relevant properties in the area where the renewable energy plant is located; design of the fuel plant , Construction and establishment, its supervision and management, operation and maintenance of renewable energy plants, installation of equipment components, setting, commissioning and trial operation of the agreed value; renewable energy plant operating funds.
In addition, the company and IGE intend to use the cash to be injected by the company and IGE, external fundraising and the cash flow from the joint venture operation to fund the working capital requirements for the establishment of renewable energy plants and renewable energy plants. For the continued development of renewable energy plants , The company and IGE may agree to make further investment when obtaining the approval of each company, but are not obliged to provide any further funding or financing guarantees unless both parties agree on the amount and method of providing funds or financing guarantees.
To the best of the Directors' knowledge, we understand and believe that IGE, Singapore is incorporated and is one of the subsidiaries of Integrated Green Energy Solutions Ltd. (ASX: IGE) listed on the Australian Securities Exchange. Integrated Green Energy Solutions Ltd. and its subsidiaries The company, focused on improving the environment and creating a cleaner planet for the next generation, is mainly engaged in the conversion of used plastics into vehicle gasoline and diesel fuels and the development of other environmentally friendly commercial technologies.
The Board believes that IGE has the most appropriate and relevant technologies and know-how in the production R&D, manufacturing and operation management to meet the needs of the Group. Therefore, the Company intends to form a joint cooperation with IGE to facilitate the design and establishment of a renewable energy plant. Benefit from the planned technology and know-how.
Pursuant to the joint venture agreement, the Group and IGE will prompt Guanshi to set up a wholly-owned subsidiary or special purpose company in China. It will be engaged in the transformation of used plastics into automotive gasoline and diesel fuel through the establishment and operation of renewable energy plants, and Acquire all approvals and licenses necessary for operation to purchase four sets of equipment components within 3 months. Joint cooperation is in line with the company's commitment to implement its eco-environmental business development plan, and will enrich the group's revenue sources.