In last trading session, the stock price of CD International Enterprises Inc (OTCMKTS:CDII) declined more than 66% to close the day at $0.00020. The decline came at a share volume of 349.29 million compared to average share volume of 77.11 million. After the recent decline, the market cap of CD International dropped to 382,570.
CD International reported that its subsidiary unit, CMAIM has finalized a letter of intent to acquire 20% equity in “Bridgewater Warranty Group, Limited” for $1 million. BWG plans to domicile its businesses in the colony of Bermuda. Bridgewater, DBA Warrnty-One.com, is a firm with a global vision for an improved warranty program for household electronics under a common umbrella. Every element of BWG has been developed to offer remarkable results.
The company embraces client objectives and focuses on its successful methods by delivering them the outcomes they need, efficiently and quickly. BWG’s focused method is to invigorate current service plan plans and to advance new service proficiencies to give clients complete satisfaction. With the equity investment, CMAIM will obtain an exclusive right to commercialize and provide BWG warranty offerings in China.
The management view
Commenting on the deal, Dr. James Wang, the CEO and Chairman of CD International reported that with this equity deal, they believe that CMAIM could introduce a new plan in China to extend its services beyond financing lease operations in China. The business model proposed by BWG is innovative in terms of recording substantial cash flow with little upfront investment.
They believe that this would work out well in China, as there is increased demand for such offerings in the market place. The project could be additional revenue center for CD International. The company is a leading U.S. based firm that sources industrial commodities and offers management and business corporate consulting services.