News blog
China Wonder
- BY: Andrew Hore |
- POSTED: 22/12/2009 |
Capital equipment manufacturer China Wonder has subscribed £200,000 for shares in Plus-quoted electric vehicles supplier Metroelectric.
China Wonder also has an option to subscribe for a further 50m shares at the current subscription price of 0.8p a share. That would triple its stake, which is currently just short of 7% of Metroelectric. China Wonder is an associate of Nasdaq-listed Wonder Auto Technology Group, which is developing a range of electric vehicles.
Metroelectric is using the cash to help finance the acquisition of Powabyke, an electric powered bicycle supplier (http://www.powabyke.com/). Metroelectric is paying £984,000 in cash and shares for Powabyke – the cash element is £120,000.
Plus-quoted Africa Oil Exploration, which is being renamed In-Solve, had agreed to buy 51% of Powabyke. AOE got a £100,000 abort fee for that transaction. This was swapped for a 3.47% stake in Metroelectric. Rivington Street is Corporate Adviser to both Metroelectric and AOE. Rivington’s Plus-quoted investment company Worship Street Investments helped finance the purchase of Powabyke from its administrator in October 2009 and it has ended up with nearly 11% of Metroelectric.
Bath-based Powabyke claims that its bikes cost 1.5p/mile to run. It was founded in 1999 and has sold 30,000 bikes. Revenues were £653,000 in its most recent financial year. Wonder Auto Technology Group and Metroelectric will work together on the development of electric bikes.
Shares in China Wonder rose 0.25p to 8p each, which values the company at £1.4m.
Net assets were £3.57m at the end of June 2009. Excluding intangibles, the NAV was still £2.13m and net cash was £840,000. Since then £171,000 has been spent on a 50% stake in Jinzhou Wonder Packing Carton Co.
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