Acquisition could add $150 million
in revenue and $30 million in profit
when operating at full-scale
SINGAPORE, April 26,
2023 /PRNewswire/ -- Caravelle International Group
(Nasdaq: CACO), a global ocean technology company, today announced
that the Company's CEO Dr. Guohua
Zhang has sold Penxing Gabon SARL to Caravelle for
$1.
Penxing Gabon SARL owns and operates a sawmill and laminate wood
flooring manufacturing facilities in Gabon, Africa
capable of producing 100,000 cubic meters of sawn timber and 2.5
million square meters of wood flooring per year. Penxing also owns
the logging rights to 340,000 hectares of forest land in
Gabon. A recent appraisal of
Penxing Gabon SARL valued the company at $30
million.
This acquisition completes the supply chain for the Company's
recently announced expansion into exporting wood products directly
to the U.S. market, with added cost savings from drying the wood
in-transit using the Company's revolutionary Co-Tech solution and
the duty-free status granted under The African Growth and
Opportunity Act making the market opportunity even more attractive.
When operating at full capacity, the Company estimates that the
Penxing manufacturing facilities could produce $150 million worth of laminating flooring and
other wood products which would generate $30
million in profit.
"It gives me great pleasure to announce the gifting of my
$30 million company to Caravelle.
This decision was made as a symbol of my commitment to building
value for all shareholders myself included as the largest and
majority shareholder, and to ensure the long-term success of our
company," said Dr. Guohua Zhang,
Chief Executive Officer of Caravelle. "Penxing Gabon SARL is much
more valuable as a part of Caravelle than it was on its own as it
vertically integrates the Company all the way from timber
harvesting to the sale of finished laminate flooring and wood
products in the United States,
Asia and Europe. This is a multi-billion market
opportunity and as a vertically integrated company we will capture
much more profit."
About Caravelle International Group
Caravelle is a global ocean technology company. Its business
comprises of two sectors: the traditional business in international
shipping, operated by the Topsheen Companies (Topsheen Shipping
Group Corporation (Samoa) and its
subsidiaries) and the new CO-Tech business under Singapore Garden
Technology Pte. Ltd.. As the traditional business,
Caravelle's international shipping business has generated all
revenues. The CO-Tech business is a new development building upon
the existing shipping business. It enables wood desiccation during
the maritime shipping process, with full utilization of the
shipping time, space, and the waste heat of exhaust gas from the
shipping vessels. Caravelle's CO-Tech industry has no historical
operations and has not generated revenue. Caravelle is
headquartered in Singapore.
Forward Looking Statements
This press release includes forward-looking statements that
involve risks and uncertainties. Forward-looking statements are
statements that are not historical facts. Such forward-looking
statements, including the successful consummation of the Company's
initial public offering, are subject to risks and uncertainties,
which could cause actual results to differ from the forward-looking
statements. The Company expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
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SOURCE Caravelle International Group