SOURCE: M-GAB Development Corporation

February 16, 2006 15:06 ET

M-GAB Announces Transaction With Dalian Runze Chemurgy Co., Ltd

IRVINE, CA -- (MARKET WIRE) -- February 16, 2006 --M-GAB Development Corporation (OTC BB: MGBD) announced today that it has a letter of understanding to enter into a definitive share exchange agreement with the shareholders of Dalian Runze Chemurgy Co., Ltd ("Runze"), a corporation organized under the laws of the People's Republic of China.

RunZe is the only subsidiary of DaLian Raiser Chemurgy Co., Ltd, a state-appointed manufacturer that specializes in the production of pesticides and herbicides. The parent company is one of the largest Acetochlor herbicide manufacturers in China, and it is anticipated that the newly formed subsidiary will acquire all the business activities of the parent upon completion of the contemplated transaction with MGBD. The financial statements of RunZe have been audited by PCAOB-approved auditors, Paritz & Co., based out of New Jersey.

Mr. Zhengquan Wang, CEO and Chairman of Runze, stated, "We are very pleased to begin the process of becoming a publicly traded company through this merger transaction with MGBD. We feel it gives our company a tremendous opportunity to grow organically and through acquisitions of other smaller pesticide and herbicide companies that will compliment our business model."

Carl M. Berg, Chairman and CEO of MGBD, stated, "We have looked at numerous opportunities to potentially increase shareholder value, and we feel the proposed transaction with Runze accomplishes that goal. The Runze management and company are highly regarded in China, and we believe that their public listing in the US will further cement their dominance in their industry."

American Union Securities CEO, John Leo, anticipates that the transaction between Runze and MGBD will be completed in the next 90 days after the completion of due diligence and shareholder approval of MGBD to withdraw its status as a business development company. American Union Securities has been retained by Runze to advise the company on this transaction and to assist management with the execution of its business plan over the next twelve months. American Union Securities is a full service investment-banking firm headquartered in New York. For additional information please visit the firm's website http://www.ausbanking.com/.

Contact Information

  • Contact:
    Carl M. Berg
    ph: 801-983-4948