Business
MonArc Corporation (MONA) Closes Acquisition of China Based Direct Marketing Company
MonArc Corporation (MONA) Closes Acquisition of China Based Direct Marketing Company.
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[{"type":"text","content":"Beijing, September 8, 2008 - MonArc Corporation www.monacorporation.com (Pink Sheets: MONA - News) is pleased to announce that it has closed the acquisition of EEIGI Ltd., a Hong Kong based direct marketing company with over 7,000 representatives.\n \nEEIGI manufactures and sells a proprietary line of all natural Health and Beauty Aids (HBA) through a direct marketing distribution business model. These are developed and shipped worldwide from the Company's Canadian offices and manufacturing centre. Importantly, EEIGI has put together a significant network of representatives, and enjoys top-line revenue in the millions of dollars with an asset base of roughly $15 million. \n \nHBA is one of the most profitable sectors based on gross margins of products sold. The most significant costs most HBA firms have is the cost of marketing and advertising, including package design. Using a direct marketing business model similar to Amway and Avon, EEIGI has reached a level of critical mass with enough distributors to generate profitability on its product line. The Company is now poised for accelerated growth, given the organic growth model of direct, multi-level sales and the marketing support the Company can now dedicate to building on an already successful business model. It is targeting a total of 18 countries to augment its core sales in China.\n \nEEIGI is currently developing an English version of it's website, which can be found at www.eeigi.com. Initial development has begun, however the quality of the translation is relatively inconsistent. One of the first tasks MonArc will undertake is to ensure that the English version of the website accurately depicts the EEIGI's products and services, and complies with North American, and eventually, European regulatory requirements.\n \nMoving forward, EEIGI will be the primary operating business within MonArc. In keeping with the Company's new business model as a Small Cap Boutique Investment Group, MonArc will work with EEIGI management to begin to create awareness of EEIGI as a public company. We will be tasked with creating investor awareness and building investor interest in EEIGI. Our advisory services will include helping to grow the Company to the next level with sound financial planning and appropriate corporate strategies. When EEIGI is ready, MonArc management intention is to spin ...