EastBridge Investment Group (OTC-BB: EBIG), a financial services company that provides Asian firms with access to U.S. markets, could see big returns after signing a new client, Dwarf Technology Ltd., which provides e-commerce services in China, similar to companies like Sohu.com Inc. (Nasdaq: SOHU) and SINA Corporation (Nasdaq: SINA).
EastBridge Investment Corp (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. exchanges, while also making valuable introductions to investment bankers and accredited investors. In exchange, the company receives cash and equity compensation that typically amounts to a 10% to 20% interest ahead of the initial public offering.
EastBridge Signs Agreement with Dwarf Technology
Earlier this month, EastBridge announced that it executed a listing agreement with a new client, Hangzhou Dwarf Technology Ltd, whose main business is located in Hangzhou, China. The company will assist the client with becoming listed in the U.S. as soon as practical. According to the 8-K filings associated with the agreement, the company will own a 15% stake in the newly public company.
Under the terms of the agreement, the new stock will be listed on the OTC-BB stock market and, after its net income exceeds RMB 25 million, will be submitted for listing on the Nasdaq, NYSE or Amex markets. Meanwhile, EastBridge will also receive a cash payment – in addition to the equity – in consideration for providing its consulting services.
E-Commerce is Rapidly Expanding in China
With more connected citizens than anywhere else in the world, China is a premier market for e-commerce retailers and auxiliary companies. Recently, the China Internet Network Information Center estimated that some 384 million consumers were connected to the internet by the end of 2009, representing a 28.9% increase from 2008 levels.
At the same time, China’s online retail sales rose to $36.6 billion in 2009 as an increasing number of consumers feel more comfortable shopping online. Meanwhile, business-to-business trade is also increasing as exports continue to grow and China’s domestic economy expands into the rural areas. As a result, companies like Dwarf Technology may be well-positioned moving forward.
Dwarf Technology is Poised to Capitalize
Dwarf Technology is a leading internet search provider for businesses, supporting multiple network technologies simultaneously, including telephony, text messaging and the internet. The company has developed innovative technologies to provide a unique platform for business-to-business trade (B2B) and online retail, and is well-positioned to grow in this emerging industry.
Investors looking to capitalize on Dwarf Technology may want to take a look at EastBridge Investment Group (OTC-BB: EBIG) as a way to potentially obtain an equity stake in Dwarf at pre-IPO multiples. If successfully brought to market, this stake could result in significant value for shareholders.
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