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Sino-Bon Entertainment Signs Letter of Intent to Acquire Majority Stake in Wuxi Linglang Electrical Manufacturing Co.

^{Published on 2010-11-12 07:56:08 - Market Wire}
 

JURONG, China--([ BUSINESS WIRE ])--Sino-Bon Entertainment, Inc. (aSino-Bona or the aCompanya)(OTCBB: SIBO), a leading manufacturer of entertainment equipment in China, today announced its intention to acquire Wuxi Linglang Electrical Manufacturing Co. (aWLEMa).

"We are pleased to announce this potential acquisition and believe that the addition of WLEMa™s products and technology into our portfolio will help stabilize the cost of our existing products and enhance our companya™s competitive advantages from integrating upstream industrial chain."

Under the terms of the Letter of Intent, the Company would acquire a majority interest in WLEM. The Company expects to close the acquisition in the second quarter of 2011.

The Acquisition is subject to a number of conditions, including the execution of a definitive share exchange agreement, stockholder approval, the completion of certain financing arrangements, and further due diligence.

Established in 2003, WLEM is a leading micro-motor manufacturer in China. Its primary product is KTYZ series micro-motor, which is the key component for the automatic Mahjong table. WLEMa™s products are sold under aLinglanga and aLinglang Stara brands. These two principal brands have enjoyed great reputation from Chinese automatic Mahjong table manufacturers thanks to their first-class quality and reliability.

Mr. Simon Song, Chief Executive Officer of Sino-Bon Entertainment commented, aWe are pleased to announce this potential acquisition and believe that the addition of WLEMa™s products and technology into our portfolio will help stabilize the cost of our existing products and enhance our companya™s competitive advantages from integrating upstream industrial chain.a

About Sino-Bon Entertainment, Inc.

Based in Jurong City, Sino-Bon Entertainment is the leading entertainment equipment manufacturer in China with large scale manufacturing facilities in Nanjing City. Through its China-based operating subsidiaries, the company engages in the development, design, manufacture, R&D, and distribution of entertainment machinery such as the Auto-Mahjong table as well as other game equipment in China. The company sells its products via its extensive distribution network consisting of more than 4,000 direct sales and franchised stores throughout China.