On June 23, 2006, MGCC Investment Strategies, Inc. announced the closing of a share exchange transaction with the stockholders of Wonder Auto Limited, a British Virgin Islands corporation.
Just before the consummation of the share exchange transaction, a private placement of capital stock of Wonder Auto was closed and it received $12 million in gross offering proceeds. One of the stockholders of Wonder Auto sold shares of company's common stock that resulted in gross proceeds of $8 million.
A BVI company Wonder Auto – a leading manufacturer of automotive electrical parts – is located in China. The company curently employs more than 290 people. Its products are manufactured in Jinzhou City factory. This China located BVI company produces broad product lines of alternators and starters and sells them through both vehicle OEMs and distributors, and its customers include such autoindustry giants as Beijing Hyundai Motor Company, Dongfeng Yueda Kia Motors Co., Ltd and Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co. Ltd. In 2005, consolidated net sales of Wonder Auto were about $48.1 million and consolidated net income was about $6.4 million. The BVI company expects to get gross revenues of about $66.0 million in fiscal 2006 and $92.5 million in fiscal 2007.
After the share exchange transaction, Wonder Auto's stockholders were issued 8,627,858 shares (which is about 88% of MGCC's outstanding common stock) in exchange for their shares of the BVI company.
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