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China Water Group, Inc Announces Entry into Share Purchase Contract

China Water Group, Inc.
2007-08-08 18:08 958

GUANGZHOU, China, Aug. 8 /Xinhua-PRNewswire/ -- China Water Group, Inc. (Pink Sheet: CHWG), a water industry company in the People's Republic of China, announced on August 2nd the signing of a contract of share ownership assignment with Fortune Luck Global International Limited. Pursuant to the contract, China Water Group, Inc. will own 90% of the shares of Guangzhou Xinchen Water Company (held by Fortune Luck Global International Limited) as well as shareholder's rights in Aba Xinchen Dagu Glacier Spring Co., Ltd. The total price for the assignment of the share ownership is 13.45 million dollars, of which 7.5 million dollars will be paid in cash, and the remaining 5.95 million dollars will be in shares. Huatian Public Accountants appraised the enterprise value of Aba Xinchendagu Dagu Glacier Spring Co., Ltd. at RMB 75,499,830,000 Yuan as of February 28, 2007.

The Dagu Glacier Spring Project contains the bottled water factory put into production with a daily output of 150,000 bottles of water initially, the use rights of the 16290.08 m2, property rights, IPRs, and trademark rights occupied by the factory, including the 50-year sole business rights of the water source. If we sell the water source at maximum capacity, it will bring us annual revenue of 500 million dollars. Dugu Glacier Spring water is located from southeast of the Qinghai-Tibet Plateau, 5,100 meters above sea level. According to the results of C14 tests carried out by the Geology Institute of the China Earthquake Administration, the Dagu Glacier Spring water contains natural water clusters that were formed 9,610 year ago, which is the oldest glacier spring water that has been discovered in the world. It is weak alkaline in nature, contains large amount of oxygen, balanced minerals, and low content of deuterium. The water source is precious and unique, and that is really good for health.

About China Water Group

China Water Group is a leading designer, engineer and developer of wastewater treatment facilities in China. With its proprietary technology resources and project management experience, China Water Group provides

turn-key, BOT and TOT services to a range of industrial companies and municipalities throughout China. China Water Group also markets and sells its proprietary GM Bio-carriers, a natural, chemical-free process designed to improve the efficiency of the wastewater treatment process.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of China Water Group and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by China Water Group may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements in this document that are not purely historical are forward-looking statements, including any statements as to the beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections includes, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices and other economic factors. China Water Group assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

Source: China Water Group, Inc.
Keywords: Food/Beverages
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