Sterling GroupVentures Inc. said April 11 that it inked a deal that would see it diversifyinto the real estate timeshare business.
The company signed a definitive agreement with to acquire Euro AsiaPremier Real Estate (HK) Ltd., which will be used to develop a leisure timeshareplatform.
Under the agreement, Sterling will issue 85 million shares toChenguo in escrow, which will be canceled if Chenguo fails to reorganize certainproperty assets into Euro Asia within nine months and reimburse Sterling US$1 million.If the situation persists in 18 months, the remaining shares will be canceled.
Sterling will also issue convertible preferred shares in escrowto be redeemable for cash equal to 75% of the appraised value of the said propertyassets, convertible at no less than 50 U.S. cents per share.
Chenguo also agreed to a US$3 million private placement at 15cents, to close on or before Aug. 1. Hanwei Guo, owner of Chenguo, also agreed tojoin the board.