CHANGSHU, China, August 3, 2015 /PRNewswire/ -- Sutor Technology Group Limited (the "Company" or "Sutor") (Nasdaq: TOR), one of the leading China-based manufacturers and customized service providers for fine finished steel products used by a variety of downstream applications, today announced that recently the Company entered into a non-binding letter of intent dated July 31, 2015 ("LOI") with the shareholder of Shanghai Lgsteel Supply Chain Management Co., Ltd. ("Lgsteel"). The LOI contemplates a transaction in which Sutor will acquire 100% of the shares of Lgsteel, a company incorporated and existing in China. Consummation of the transaction is subject to entry into a definitive agreement between the parties containing specific closing terms and conditions yet to be negotiated.
Lgsteel is a one-stop steel supply chain services platform, which provides nearly one million of online users with steel seeking, procurement, marketing, processing, distribution, supply chain financing, online payment, logistics tracking, electronic billing and other online services related to steel products.
Since our business transformation, Sutor has been catching the attention of steel industry participants. The contemplated acquisition of Lgsteel is an important strategy for our new business model. In our march to becoming a leading fine steel customized service provider, we not only rely on our strong industry experience, but we also combine it with cutting-edge internet technology. Based on our investigation, we chose Lgsteel, a famous domestic comprehensive e-commerce service platform of bulk commodities in the steel industry, as our target. We believe the contemplated acquisition will further promote the Company's "Internet + Fine Finished Steel Customized Services" business model.
About Sutor Technology Group Ltd
Sutor is one of the leading China-based manufacturers and customized service providers for high-end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. The Company also provides fee-based steel processing services to customers, including industrial peers. To learn more about the Company, please visit http://www.sutorcn.com/en/index.php.
This press release includes certain statements that are not descriptions of historical facts, but are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, those concerning our expected financial performance, liquidity and strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2014, and other risks mentioned in our other reports filed with the Securities Exchange Commission ("SEC"). Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
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Sutor Technology Group Limited
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SOURCE Sutor Technology Group Limited