Good Life China (GLCC) to Spin Off Logistics Division valued at $1.5 million U.S.
Last update: 8:08 a.m. EDT Oct. 17, 2008
BEIJING, Oct 17, 2008 /PRNewswire-FirstCall via COMTEX/ -- Good Life China Corporation www.goodlifechina.com (GLCC.PK) is pleased to announce that it intends to spin off its logistics division to a Chinese based buyer, an operating subsidiary of a USA based publicly traded company.
Company CEO Dongmei Jia explains "To those that have been following Good Life for a while now, and as per our previous filings, it is no secret that we have been seeking a buyer for our logistics division for some time now. As previously announced, the Good Life has transitioned away from being a traditional franchised retail store chain. We have developed an innovative and highly sophisticated end-to-end supply chain management platform, from which it generates revenue from both the supply side and retail side of the business.
"This has eliminated financial risks and tight margins normally associated with a traditional retail chain business model, as the Company does not take title to products that move through the retail distribution channel. Instead, the Company charges both its store members and suppliers fees for using its advanced logistics, warehousing and related e-commerce functions. With the evolution of our business model, we have therefore decided to recognize this new reality, and split off this division into a separate publicly traded company. Frankly, we do not feel that the Company's current market capitalization properly reflects the true value of the Company. This move is designed to unlock the true value of the underlying business, and allow the market to place a valuation more in line with the fundamental economic performance of Good Life as a whole".
The Company has reached a preliminary agreement with a China based company. The deal is tentatively valued at $1.5 million U.S. This will be comprised of a cash payment of $300,000 and stock issuance of the purchaser's company. We are also considering our corporate advisor Mina Mar Group proposal that part of this purchase price be returned to our USA based shareholders who have held their position for at least a couple of months in the form of a 1 time special dividend, in addition to the dividend already scheduled for a payout by the end of the 4th quarter."
In other corporate news: the issuer has posted a copy of a TV ad which will begin airing shortly nationwide on its corporate web site www.goodlifechina.com; click on the "as seen on TV" icon.
CONTACT: corporate@goodlifechina.com
SOURCE Good Life China Corporation
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