We alerted IGC on acquisition news in the morning at just above $.20. IGC markets traded today 2,950,104 shares (almost 60fold 10day average volume), topped to $.39 and closed at $.3345.
Outstanding performance by PennyStockHaven – 90% in daily gains!
Secondary… is the actual company news (-:
India Globalization Capital, Inc. (AMEX: IGC) announced that it has entered a definitive agreement to acquire an iron ore processing company, Linxi H&F Economic and Trade Co. (“PRC Ironman”), located in Chifeng, China.
Ram Mukunda, CEO of IGC, commented:
“PRC Ironman has audited revenues of approximately $13.5 million and approximately $5.9 million in net after tax earnings for FYE March 31, 2011 and a good liquid balance sheet. In addition to an immediate impact on earnings, this acquisition will greatly enhance our position in the materials business by creating a rapidly growing, profitable iron ore business for IGC. PRC Ironman refines low-grade ore to high-grade ore, which commands a higher price and margin in the market. Our strategy is to both mine and ship low-grade ore to the refining facilities and through a beneficiation process convert the ore to high-grade ore. Over the next 24 months, we expect to expand this business rapidly through organic growth. Additionally, there are great values in this space which may provide additional opportunities for bolt-on acquisitions. This is the first step towards creating a value added, vertically integrated iron ore business that extends from India into China.”
Read more details at this link.
India Globalization Capital (IGC)
4336 Montgomery Ave.
Bethesda, MD 20814
Mr. John Selvaraj
Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and construction company operating in India. We supply iron ore to China and rock aggregate to the infrastructure industry in India.
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