Mr Ladha, who has served as CEO of Ableauctions since 1999, will step down as CEO on February 5, and will be succeeded by Jianhua Lv, who is an initial founder and current president of SinoCoking. In addition, the current board of directors of Ableauctions will step down and be succeeded by seven new directors designated by SinoCoking.
Abdul Ladha, CEO of Ableauctions, said: ”This acquisition has provided our shareholders with a unique opportunity to participate as equity holders in what we believe to be a company that has good fundamentals and growth potential as a supplier of products of vital economic importance within China’s fast-growing economy.
”Moreover, the transaction allows our pre-acquisition shareholders to receive the full liquidation value of our pre-acquisition business assets in addition to a 3% aggregate stake in the reorganized company to be renamed SinoCoking Coal and Coke Chemical Industries, Inc.”
Mr Jianhua Lv, the incoming CEO of Ableauctions, said: “As a coal producer and coke manufacturer, SinoCoking has been a significant supplier of the vital commodities of thermal and metallurgical coal and coke to industrial customers such as power plants, steel mills and other industrial buyers in China since 1996. SinoCoking is a vertically-integrated processor that uses coal from both its own mines and that of third-party mines to provide basic and value-added coal products to its client base.
“SinoCoking currently holds mining rights for approximately 2.5 million tons of coal from mines located in central China. For the year ending June 30, 2009, SinoCoking produced and sold 154,631 tons of coke, 55,360 tons of washed coal, and 72,923 tons of raw coal, and generated $51m in revenue from sales consisting primarily of these products. During its 2009 fiscal year, SinoCoking had audited net income of approximately $17m on a GAAP basis.”
