GC China Turbine Corp. (GCHT) at a time of growing support for global environmental issues this week marks a milestone for the United Nations as well as for GC China Turbine Corp. Nearly 100 world leaders agreed to participate in an historic Summit on Climate Change in New York this week in order to mobilize political will and strengthen momentum for a fair, effective, and ambitious climate deal in Copenhagen this December.
The Summit marks the first UN visit for the Presidents of China and the United States. This participation clearly underlines the degree of commitment to change at the highest levels of world government. “Failure to reach broad agreement in Copenhagen would be morally inexcusable, economically short-sighted and politically unwise,” the Secretary-General said in his opening address. “Now is the moment to act in common cause.”
It is against this backdrop of political will and resultant extraordinary potential for increased industry momentum that will directly affect the future positive growth of the wind power sector in China, that GC China Turbine Corp. is pleased to announce the final framework for a definitive agreement (the “Agreement”) with Wuhan Guoce Nordic New Energy Co. Ltd., a People’s Republic of China Company (“GC Nordic”), and all related parties have met, thus paving the way for the execution of the share exchange agreement by the end of the month.
All parties have agreed to the terms and conditions of a formal, definitive agreement, which will see the Company consummate a voluntary share exchange with the parent company of GC Nordic by acquiring all of the issued and outstanding capital stock of the parent company of GC Nordic in exchange for the issuance of shares of common stock of the Company, which will represent a fifty four percent (54%) ownership interest in the Company post-Closing (the “Exchange”). As a result, upon consummation of the Exchange, the Company shall indirectly own all of the outstanding capital stock of GC Nordic. Furthermore, the previously announced $10,000,000 loan made to the Company will be converted into shares of the Company’s common stock.
It is anticipated that an announcement of the formal closing providing further details of the agreement will be made shortly.
Wuhan Guoce Nordic New Energy Co. Ltd. (GC Nordic) is a wind turbine manufacturing venture and affiliate of the highly regarded and successful multi-division Wuhan Guoce Group of Companies. The organization is a well established manufacturer of hydraulic and electronic systems offering direct access to a national client base representing a large industrial market share with extensive vertical penetration opportunities across the People’s Republic of China (“PRC”). The company holds a license to manufacture a robust and innovative wind turbine system originally developed in Europe.
Further details regarding the Company and complete details of the Exchange with GC Nordic are filed as part of the Company’s continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s (“SEC”) EDGAR database.