Regal Group, Inc. today announced the formal completion of the acquisition of HK-incorporated holding company, UHF Logistics Ltd., which is focused on providing UHF RFID solutions to the Chinese market via its subsidiaries.
Strategically repositioning itself along multiple fronts from which to deploy its technology in key sectors in China in order to take advantage of the country’s economy, Regal Group, Inc. is in the process of revamping its product delivery, from supply chain and logistics (or real-time infrastructural transparency) to anti-theft and security, putting the Company in a serious position to capture market share in this rapidly emerging sector.
Founder of UHF Logistics’ operating subsidiaries, Mr. Sammul Su, called the acquisition by RGLG a real boon, as being the subsidiary of a US public company will benefit subsidiary stakeholders tremendously by providing access to foreign capital. This in itself is a powerful tool for moving forward with plans to secure even more territory in the RFID industry.
Share Exchange Agreement closing conditions have all been fulfilled:
• receipt of necessary regulatory approvals
• receipt, by the Company, of legal opinions from Chinese counsel opining on the legality of the proposed transaction
• receipt, by the Company, of audited financial statements of UHF and Shenzhen RPD, prepared in accordance with GAAP and audited by an independent auditor registered with the Public Company Accounting Oversight Board in the United States
Mr. Sammul Su noted widespread adoption and general receptivity to RFID throughout Chinese industry over the past several years as priming the pump for accelerated growth.
In addition, shrewd formulation of technical policy on behalf of authorities help underwrite the importance of developing China’s e-tag infrastructure and RFID applications, and this has led to a perfect market environment for the Company.
The China National E-Tag Standard Work Group has established relevant standards since 2005 to support the RFID industry with strong assurances, while the Ministry of Science and Technology has set about allocating funds to 10-15 key industries in order to further aid the industrialization of RFID in China.
With the best uptake in middle to low-frequency applications like e-ticketing, identification, security gates and transport, RFID utilization in China from a technical standpoint is right up the Company’s alley.
Corporate short-term strategy for RGLG will see focused sales in key growth application areas. The Company is already hard at work on implementations with companies in food, power, supply chain and tobacco verticals, where the cost-effectiveness of RFID infrastructure and improvements to overall workflow efficiency is increasingly seen as a vital competitive advantage for producing shareholder returns.