Mege Union goes in for reverse merger
April 18, 2008 - United States Of America
On April 17, 2008, Harbin Mege Union Beauty Management Ltd(Mege Union), the largest private beauty salon, spa and fitness club operator in Northeast China, announces that it has gone public through reverse merger by merging its holding company, Wealthlink Co Ltd, a Cayman Islands Corporation, into American Holdings Inc a Delaware corporation.
After the transaction, Mege Union will change its corporate name to SOKO Fitness Group Inc in order to adequately reflect the Company's business.
Headquartered in Harbin, Heilongjiang province, Mege Union is a leading company in the fast growing beauty and fitness industry in China.
It currently operates 6 beauty salons, spas, and fitness clubs with first-class facilities in Harbin in Northeast China, providing highly professional service to the middle-to-upper class.
In its fiscal year of 2007 ended in May 31, the company achieved $7.4 million in revenues and $3.1 million in net income.
"We are very pleased to become a public company in the United States, which gives us the tremendous opportunity to tap into U.S. capital markets to accelerate our expansion as well as improve our management," says Liu Tong, the CEO and President of the Company. "We will strive to become a leader in this industry in China and maximize the interests of our shareholders."
Founded in 1992, Mege Union has track record of high profitability, and it has more than 10,000 members by the end of its fiscal year of 2007.
After going public, it plans to expand rapidly in Northeast China like Dalian, Shenyang, and other cities like Beijing in China through active acquisition and organic growth in the next three years.
Upon the consummation of its reverse merger, Mege Union completed a private placement simultaneously with institutional accredited investors led by Guerrilla Partners, Hua-Mei 21st Century Partners, and James Fuld, Jr, and received $2 million in gross proceeds.