Shine Media Acquisition Corporation is buying China Greenscape Company, which owns Jiangsu Sunshine Zoology and Forestry Development Company, one of the largest green resources companies in China supplying trees and plants to China's cities and developing communities.
Greenscape is reportedly one of the few companies in China that is large enough to meet the central government mandated green needs of entire cities, urban and industrial development zones. The company has accumulated an inventory of over eight million trees and plants, a growing area of over 3,100 acres, and the ability to develop and acquire millions of additional trees and plants each year.
Prior to close of the transaction, Shine will merge with a wholly owned subsidiary, Green China Resources, and then Greenscape stockholders will receive 30,800,000 shares of GC Resources common stock in exchange for all of the outstanding common stock of Greenscape. Following the close, there will be an exchange offer made to Greenscape's preferred shareholders to exchange their Greenscape preferred shares for US$25 million and 6,500,000 shares of GC Resources common stock. As additional purchase consideration, Greenscape stockholders will be issued up to an aggregate of 21,000,000 additional shares of GC Resources common stock if certain net income targets over the time period are achieved.
"Greenscape is well positioned to capitalize on two significant trends in China: that of increased urbanization and the government's environmental mandate to increase green space. We are very excited to be partnering with the market leader and look forward to building on the Company's track record of growth and success," commented Richard Chang, non-executive chairman of Shine.
