CD International Enterprises Acquires 100% of EM Resource Enterprises

DEERFIELD BEACH, Fla., Oct. 6, 2014 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTCQB: CDII), a U.S. based company that sources and distributes industrial commodities in China and the Americas, today announced that it has completed acquisition of 100% equity interest in EM Resource Enterprises, Inc. ("EM Resource"), a Miami-based mineral and energy trading company.

As previously disclosed, EM Resource is engaged in international trading business in industrial commodities such as iron ore and energy commodities such as diesel fuel. According to unaudited financial statements, EM Resource generated revenues of approximately $30 million and $50 million in the calendar years of 2012 and 2013, respectively. EM Resource had approximately $11.5 million in shareholder equity as of June 30, 2014.

CD International issued 209,375 shares of Series "E" preferred stock valued at $13.4 million and a two year $2 million promissory note to the EM Resource's shareholder in exchange for 100% of its outstanding shares. The Series "E" preferred stock bears no interest, has no voting rights, and becomes convertible into a total of 209,375,000 shares of CD International's common stock beginning on October 1, 2017. CD International expects to repay the promissory note through a portion of the cash generated from its new operations over the course of the next two years. 

In a separate transaction, CD International discontinued its magnesium segment as of September 30, 2014 through the sale of all of its magnesium subsidiaries to the minority shareholders of those subsidiaries in exchange for 8,325,949 shares of CD International's common stock held by those minority shareholders. Those shares are to be cancelled and returned to treasury.

As a result, the net effect of both transactions will result in the Company's currently issued and outstanding shares of common stock being reduced from approximately 66 million shares to approximately 58 million shares. The Series "E" preferred stock will have no near term dilutive effect on the Company's outstanding common shares as it cannot be converted into common stock for a period of three years following the completion of the acquisition. The Company plans to file two-year audited financial statements for EM Resource by the middle of December 2014 and for CD International to become current in its reporting requirements with the SEC, including its Form 10K filings for the fiscal years 2013 and 2014 by the end of December 2014. 

Commenting on the announcement, Dr. James Wang, Chairman and CEO of CD International said "We are very pleased to complete this important acquisition along with the disposition of our magnesium segment. The magnesium industry has failed to fully recover from the global economic crisis in 2009 bringing us to the decision to exit our magnesium segment in China.  We now enter a new chapter in our corporation history with the acquisition of EM Resource. EM Resource has been profitable in the past three years and we believe it will continue to generate substantial profits in 2015 and beyond. It also is a perfect fit to help us elevate our mineral business to a much higher level as we enter fiscal 2015.  We look forward including EM Resource in our annual report for fiscal 2014 and building on its profitability for years to come."

About CD International Enterprises, Inc. 

CD International Enterprises, Inc. (OTCQB: CDII), is a U.S. based company that sources and distributes industrial commodities in China and the Americas and provides business and management corporate consulting services. For more information about CD International, please visit http://www.cdii.net.

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, CD International Enterprises, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding CDII Peru and the completion of agreements with other potential investors and partners for this effort in Peru, our ability to arrange financing, our expectations regarding profits, if any, and future operating results of CDII Peru and growth in our South America operations. 

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2012.

Contact:

CD International Enterprises, Inc.
Richard Galterio
Investor Relations
Phone: +1-954-363-7333 Ext. 316
Email: [email protected]

SOURCE CD International Enterprises, Inc

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