Vancouver, British Columbia--(Newsfile Corp. - January 18, 2021) - China Keli Electric Company Ltd. (TSXV: ZKL.H) (the "Company" or "China Keli") is pleased to announce that the cease trade order (the "CTO") issued by the British Columbia Securities Commission (the "BCSC") has been revoked.
The CTO was issued by the BCSC on October 30, 2018, as a result of the failure of the Company to file audited financial statements and related management discussion and analysis for the year ended April 30, 2018. The Company previously submitted an application for a full revocation of CTO in 2019. However, as the Company no longer carried on an active business, it subsequently ran out of resources, and the application was closed on December 31, 2019 with the CTO remaining outstanding.
The Company continued to investigate its options throughout 2020. The Company applied for and received a partial revocation of the CTO in order to permit a $200,000 bridge loan financing. In addition, the Company also announced that Madam Sou Wa Wong and Mr. Lou Meng Cheong have entered into agreements to sell 35,440,000 and 22,560,000 shares of the Company respectively. The shares to be sold by Madam Wong and Mr. Cheong represent 39.2% and 24.7% of the issued and outstanding shares of the Company respectively. The share sales do not, by definition, constitute a "take-over bid" set forth in Multilateral Instrument 62-104 Take-Over Bids and Insider Bids on the basis that none of the sellers and purchasers are resident in Canada. Completion of the share sales are subject to, among other things, the full revocation of the CTO and the approval of the NEX.
With the completion of the bridge financing, the Company applied again for a full revocation of the CTO. In connection with the second application, the Company has addressed the outstanding filing deficiencies and brought its continuous disclosure records on SEDAR up to date. The Company also held its annual general meeting on December 30, 2020 and elected a new slate of directors. The BCSC revoked the CTO issued against the Company on January 18, 2021.
With the revocation of the CTO, it is expected the share sales by Madam Wong and Mr. Cheong will be completed, and the Company will complete a 20:1 share consolidation. Thereafter, the Company, under new controlling shareholders, will seek out and investigate new business opportunities.
For further information, please contact:
CHINA KELI ELECTRIC COMPANY LTD.
Philip Lo, Chief Executive Officer
Tel. No.: (86) 13632 173732
Email:
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