December 23, 2019, Beijing Shouhang IHW Resources Saving Technology Company Ltd. (“Shouhang”), a company listed on the Shenzhen Stock Exchange in China announced that Shouhang decided to sell the 75% of the registered share capital of Shanghai Engin Digital Technology Co. Ltd, a company incorporated and registered in China (“ENGIN”) to Pacific Green Technologies Inc. (“PGTK”), for maximum consideration of RMB 76,000,000.
EnginChina was registered in 2012, is a development, design and engineering company focused primarily on Concentrated Solar Power, Salt Water Desalination and Waste to Energy technologies. In 2013, EnginChina became a subsidiary of Shouhang (stock code 002665).
Shouhang Dunhuang 100MW Molten Salt Tower CSP Plant
PGTK announced that it has acquired ENGIN through two separate transactions (the “Transactions”). The Transactions will be funded by the Company’s own internal financial resources. Over the next six months, ENGIN’s staff will be integrated into the Company’s existing nearby offices in Shanghai.
PGTK and Shouhang agreed and signed the transaction on December 20, 2019 (the “Shouhang Agreement”). Consideration is payable as follows:
RMB 41,000,000 payable on signing;
RMB 15,000,000 payable on or before 20 March 2020;
RMB 20,000,000 payable on successful completion of certain Performance Tests.
Contemporaneously, PGTK has acquired 25% of the registered share capital of ENGIN from Mr Liu Tao and Ms Liang Qi (the “Vendors”) in a separate transaction for maximum consideration of RMB 2,000,000 and the issue of 125,000 new shares in the capital stock of PGTK. PGTK and the Vendors agreed and signed this transaction on December 20, 2019. Consideration is payable as follows:
the issue of 125,000 new shares in the capital stock of PGTK to the Vendors;
RMB 2,000,000 payable on successful completion of certain Performance Tests.
As part of the Shouhang Agreement, the parties have agreed an intent to enter an International Strategic Alliance Agreement between PGTK, Shouhang and PowerChina for the development of CSP plants whereby PGTK and ENGIN provide the Intellectual Property, the technical know-how, design and engineering, Shouhang provides manufacturing of the solar field and molten salt tank services and PowerChina provides the EPC role both in China and international markets.