Following on from last weeks post on SDT, the holding company Wuhan General Group ($WUHN) has come out swinging this week with two big press releases outlining their intention to spin-off the technology related business SDT Holdings. The tax-free spin-off is expected to be completed in the fourth quarter of 2018, while the confirmation of the stock distribution ratio will happen sooner in the coming weeks.
This news comes on hot on the heels of a recent conversation I shared with the CEO of Wuhan General Group and SDT Ramy Kamaneh, Ramy is an Engineer with a strong analytical mindset so this strategic move comes as no surprise to me.
The separation of the two companies allows for each to concentrate solely on their respective interests and marketplaces, while giving more clarity to shareholders and potential investors. SDT will trade on both the OTCQB and CSE stock exchange markets, widening the scope for investment opportunities.
We are very excited about this spin-off and the potential of both these prospective companies going forward. With WUHN sitting nicely at $0.28 before open of business today, this is a great opportunity to get involved in two big deals.
David & The Team
Wuhan General Group Announces Intention to Spin-off Company’s Tech Development Business
MONTREAL, Sept. 04, 2018 (GLOBE NEWSWIRE) — via OTC PR WIRE — Wuhan General Group (China), Inc. (OTC PINK: WUHN) (the “Company”), a Nevada investment company focused on the industrial technology market space, announced today that its Board of Directors has unanimously approved a plan to pursue a spin-off of the Company’s Canadian tech related business, Strategic Development of Technology (SDT), Inc, to Company shareholders. The separation is planned as a tax-free spin-off transaction to the Company’s shareholders and is expected to be completed in the fourth quarter of 2018.
The transaction is expected to result in two separate public companies that will benefit from leading positions in their respective industries. As of the Record Date (cut-off date), the Company shareholders will be eligible to receive SDT common stock shares. The transaction is intended to take the form of a tax-free distribution to Company shareholders. The expected stock distribution ratio will be confirmed in the comings weeks.
Ramy Kamaneh, CEO said: “We believe that establishing SDT as a stand-alone, fully reporting public company will allow for us to align more closely with our strategic initiatives. It will also give the investment community clearer insight into the potential value our businesses can continue to create. As a Canadian company, this is a compelling opportunity to reach investors in the U.S. and in Canada by trading on both the OTCQB and CSE stock exchange markets.”
The full press release from original source found here.
Follow up press release from yesterday with more information found here.