(Oct. 9, 2009 - Guest Contributor) Editor's note: The following article was written by Zou Soueidan of GeoInvesting. The "GeoTeam" of researchers and analysts uses fundamental criteria to analyze micro- and small-cap stocks.
On September 30, 2009, GC China Turbine Corp. (OTC:GCHT) entered into a voluntary share exchange transaction with wind turbines manufacturer GC Nordic based in China pursuant to a Share Exchange Agreement.
- Immediately after the Exchange Transaction and automatic notes conversion, the Company will have 52,570,015 shares of common stock issued and outstanding.
- The consummation of the Exchange Transaction is also contingent on:
(a) a minimum of $ 8,000,000 being subscribed for, and funded into escrow, by certain accredited and institutional investors for the purchase of 6,400,000 shares of the Company’s Common Stock.
(b) the closing of a debt financing transaction with Clarus Capital Ltd. for the aggregate amount of $1,000,000, which shall be convertible into the Company’s Common Stock at $2.00 per share and have a 2 year repayment.
- Estimated Total diluted share count: 61 million
- GC Nordic is the only manufacturer of 2-bladed wind turbine systems in China.
- Initial sales efforts have been rewarded with contracts of approximately $128 million.
- GC Nordic's technology is based on a 10 year, $75 million research and development investment by the government of Sweden. The development project that created the technology has been operating for 10 years with 98% output availability during this period.
- The wind power industry in China is booming. Chinese government guidelines mandate that 30,000 MW of wind power be installed by 2020.
- The Chinese government has mandated that 70% of wind components be sourced domestically by 2010.
- Currently, GC Nordic is executing three contracts of 50 units with three entities.
Source: Marketwire (October 6, 2009), SEC Form 8K (October 6, 2009)
Financial forecasts provided by the Company:
|2008 Reported||2009 Estimate||2010 Estimate||2011 Estimate||2012 Estimate|
|Revenue||$3.1 M||$28.7 M||$87.2 M||$199. M||$536.0 M|
|Net Income (25% Tax Rate)||-$400 T||$4.1 M||$14.7 M||$30.4 M||$89.0 M|
a The Company did not provide EPS estimates.