January 12, 2016 – Calgary, Alberta – Avmax Group Inc. (“Avmax”) is pleased to announce that its parent corporation Avmax Holdings Inc. (“AHI”) has entered into a share purchase agreement dated January 8, 2016 (the “Agreement”) with Sunward Intelligent Equipment Co., Ltd. (“Sunward”) and Binder Capital Corp. (“BCC”). Sunward is a corporation existing under the laws of the People’s Republic of China and is listed on Shenzhen Stock Exchange (stock code: 002097).
Sunward will acquire a majority interest in Avmax during the spring of 2016, and will acquire additional portions of Avmax shares annually over the next 3 to 4 years at which time Sunward will own 100%.
“Leveraging the strengths of each organization we will gain the necessary capital to continue to grow our diversified revenue streams and enter new markets that will build value for investors and our clients. The Agreement will leverage Avmax and Sunward’s combined strengths to expand as a global and fully integrated aviation company,” said John Binder, President and Chief Executive Officer of Avmax.
“Avmax will benefit from Sunward’s geographic footprint and industry connections to grow new revenue opportunities in the areas of aviation. With a foothold in one of the largest markets in the world, China, and with Avmax’s current global locations — the combined companies will contribute to a significant aviation presence,” said Kirk Watson, Chief Operating Officer of Avmax. “Avmax and Sunward will continue to operate as independent units while taking advantage of synergies between the two companies.”
Due to Canadian Transportation Agency restrictions on foreign ownership, the participation of Sunward in the ownership of Regional 1 Airlines Ltd. (dba R1 Airlines) shall be restricted, pending regulatory approval. Further, the U.S. subsidiaries of Avmax shall be wholly excluded from the Transaction for the time being, pending U.S. regulatory approval.
Completion of the Transaction is subject to a number of standard closing conditions including, but not limited to, applicable Chinese and Canadian regulatory approvals. Where applicable, the Transaction cannot close until the required regulatory approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
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About Avmax Group Inc.
Our vision at Avmax is to simplify our customers’ aviation needs through dependable, globally integrated services with trusted results. Established in 1976, our locations include: Calgary (HQ), Vancouver and Montreal in Canada, Great Falls and Jacksonville in the USA, Nairobi in Kenya and N’Djamena in Chad. Avmax offers the following capabilities: Aircraft Leasing, Aviation Spares, Airline Operations, Avionics, Component Repairs, Engineering, Executive Interiors, MRO and Paint. Avmax’s engineering division is a Transport Canada authorized Design Approval Organization (DAO). Avmax’s Canadian maintenance division is a Transport Canada authorized approved Maintenance Organization (AMO). Powering Simplicity in Aviation. www.Avmax.com
About Sunward
Sunward Intelligent Equipment Co., Ltd. was founded in 1999 and (stock short name: Sunward Intelligent; stock code: 002097). The Sunward Group is headquartered in Changsha City, China. Sunward has subsidiaries located in Changsha Province, Wuxi Province, Huaibei Province and Europe. The Sunward Group has expanded into an international enterprise that focuses on machinery engineering and the development of intellectual property. The Sunward Group has achieved global influence, ranking among top 50 global enterprises manufacturing construction machinery. Sunward takes the lead in diverse markets, relying on its independent innovation, outstanding technical strengths and demonstrated management skill. Sunward Group is a respected manufacturer of large piling machines, a full series of excavators, modern rock drilling equipment, industrial vehicles, mining equipment, hoisting machinery, pavement construction machinery, hydraulic components, military machinery, general aviation equipment, yachts and more. www.sunward.com.cn
Forward Looking Information
This news release may include forward-looking information that is based on certain key expectations and assumptions made by the management of Avmax including future plans for growth. Although Avmax believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on it because Avmax can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Avmax disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable laws.
Further Information
All information contained in this press release with respect to Avmax, AHI, BCC and Sunward was supplied by the parties respectively, for inclusion herein, and each party and its directors and officers have relied on the other party for any information concerning the other party.
For further information regarding the Transaction, please contact:
Media Relations Tara Brown +1 403 250 3185 Tara.Brown@Avmax.com
or
Media Relations Jennifer Salo +1 416 460 3966 Jennifer.Salo@R1Airlines.ca