Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

September 06, 2011 09:30 ET

Grand Power Announces the Engagement of J.P. Morgan as Financial Advisor

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Sept. 6, 2011) - Grand Power Logistics Group Inc. ("Grand Power" or the "Company") (TSX VENTURE:GPW), a leading China-based international logistics provider, is pleased to announce that J.P. Morgan Securities (Asia Pacific) Limited ("J.P. Morgan") has been exclusively engaged by the Company's 70% owned subsidiary, Grand Power Logistics Development Ltd. ("GPLD"), to act as its financial advisor. GPLD has established a WOFE (Wholly Owned Foreign Enterprise) in Zhejiang, China to facilitate the development of Yangshan International Container Transit Logistics Park ("Yangshan Logistics Park"). J.P. Morgan will provide financial advisory services in connection to the investment in Yangshan Logistics Park with a total investment estimated to be in the range of US$360 million.

Other Related Corporate Developments

In addition, the Company has the following related corporate developments:

  • Injected share capital to date in GPLD is HK$12 million and will be increased to HK$36 million. Grand Power will further inject HK$4.8 million to ultimately hold 36.67% ownership in GPLD after the full share capital of HK$36 million has been contributed. The remaining ownership is controlled by a group of private investors, including Ricky Chiu, Grand Power's President and CEO;
  • As sufficient funds are expected to be raised from other investors for the Yangshan Logistics Park project, GPLD has withdrawn the Convertible Note of HK$120 million and has repaid HK$24 million to the investor "Star Galaxy Capital Limited"; and
  • Mr. Jones Chu resigned as Director of Grand Power. His current duty as Director and Chairman of GPLD remains unchanged. Mr. Chu can now focus more fully in the development of Yangshan Logistics Park.

About Yangshan Deep-Sea Port

Located 26 kilometers off Shanghai's southern coast, China's leaders consider the Yangshan deep-sea port project very important in Shanghai's bid to become a dominant shipping logistics centre and global economic player. When the port is fully developed in 2020, it will be lined with over 50 berths capable of accommodating up to 15 million 20-foot equivalent containers.

The entire project will be completed in four phases at a total estimated cost of US$12-billion to US$18-billion. Phases 1 and 2 have already been completed, including the Donghai Bridge which, at 32.5 kilometers and six lanes, is the second longest cross-sea bridge in the world. The goal of the port is to ultimately become the biggest international shipping hub in the world, facilitating China's ever-growing trade with an internationally competitive and state-of-the-art facility.

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express), and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen and Guangzhou. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Beijing, Tianjin and Xiamen. For more information visit

Forward-looking Information

Statements included in this press release that are not historical facts may be considered "forward looking statements". All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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