Client Introduction
Empire Industries Ltd. is a world class amusement ride designer and manufacturer which supplies to the biggest amusement parks in the world, including Disney, Universal Studios.
Empire Industries Ltd. (Empire) is publicly traded on the TSX Venture Exchange (TSXV:EIL). Empire has operations and offices in Canada, the United States, and China, and sells its products globally.
Its primary products are media-based attractions, including Proprietary product line of attractions such as Flying Theatres, SFX Coasters, etc. Also, it manufactures sophisticated ride systems for Tier 1 entertainment companies that develop their own attractions; In addition, it makes highly engineered, complex equipment, such as observatory telescopes and enclosures.
Mission
- Entering the fast growing Chinese market with a committed entrepreneurial partner;
- Attract sufficient investment capital to fulfill the business plan at the same time;
- Build China Joint Venture without risky capital injection from Canada and without tie down valuable Ips.
Our Contribution
- Introduced a strong list of Chinese Canadian investor partner prospects to the CEO of Empire Industries, including entrepreneurs from Shanxi Province, Shenyang Province, Beijing, Shanghai, and Zhejiang Province.
- Worked closely with the Client’s CEO for due diligence works on the investors, and visited China for 10+ times during the 18 months core working period.
- Identified and developed the trustworthy relationship with the final investment partner, and assisted the core presentations to the investor, the city officials, and provincial officials in China.
- Build the whole investment presentations including Teaser, CIM, Financial Model, Tech presentation, and China Business Plan.
- Managed through the critical process on financial and legal due diligence over the period of six months.
- Problem solving support over transactional issues, including but not limited to, cultural barrier, language miscommunications, due diligence issues, transactional cost negotiations, and deal structural issues.
Result
- CAN $4.5 million strategic investment in Empire Industries Ltd., by Canada Zhoufa Agricultural Holdings Ltd. (“ZAH“);
- ZAH has purchased securities representing 19.9% on a non-diluted basis;
- ZAH has purchased $2.5M of units consisting of one common share and one-half of one warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of $0.05 per share within one year from closing, and thereafter at an exercise price of $0.10 per share on or before the five years anniversary of the offering. The $2.0M convertible debenture purchase by ZAH bears interest at 7%, has a term of 4 years and is convertible at $0.10 per share any time until maturity.
