New York, March 5, 2021 -- Earthasia International Holdings Ltd. (“The Company") (“Graphex Group”) (OTCQX: ETIHY; HKEX: 6128), a leader in graphene products and technologies and a manufacturer of spherical graphite and graphene technology for the renewable energy sector, today announced the Company has entered into a Letter of Intent with an exclusive negotiating period to acquire a majority stake in Shenzhen KYSS Technology Co., Limited (“KYSS”), a China-based producer of graphene lithium-ion (Li-ion) battery cells and replaceable battery modules for mopeds and scooters.
“Our Strategy is to become a leader in energy storage solutions,” explained Chan Yick Yan Andross, Chief Executive Officer and Director, Earthasia International Holdings Ltd. “We continue to explore all opportunities to reinforce our position in the new energy sector by extending our products and services downstream. The acquisition of KYSS, if materialized, can become a core component as we execute our strategy.”
The Company has been granted a period of exclusivity until December 31, 2021 (“Exclusive Period”) as it conducts its due diligence review on KYSS. Subject to due diligence review and formal agreement, the Company intends to become the major shareholder of KYSS by subscribing to the newly issued shares of KYSS, thereby acquiring KYSS’s graphene lithium-ion battery business, to compliment the Company’s spherical graphite manufacturing business.
The Company’s spherical graphite manufacturing facility is strategically located in Heilongjiang Province, which has significant high-quality natural graphite reserves. Once the Company’s recently announced new production facility, Heilongjiang Province Graphex New Material Technology Company Limited, is fully operational, the Company expects to increase annual production by 30,000 tons to a total of 40,000 tons.
The Company also recently announced a name change from Earthasia International Holdings Ltd. to Graphex Group. It was the first of a number of strategic actions being taken to accurately reflect the Company’s focus on graphene research, manufacturing and development and further capitalize on the opportunities the graphene sector presents. The Company remains committed to its strategy of achieving leadership in the graphene business.