URAL COMPLETES CONTEC ACQUISITION

URAL COMPLETES CONTEC ACQUISITION                                                     

GREEN VITALITY INVESTMENT HOLDINGS INC. (FORMER NAME: UNITED RAIL INC. – OTCMarkets TICKER: URAL)

LAS VEGAS, NV, MAY 5, 2021

Following previous announcements, the company is pleased to announce the close and completion for the acquisition by the company’s 51% owned subsidiary Skywalker Hitec Ltd of 100% of the issued capital in Contec Precision Engineering Ltd.

The acquisition closed on April 30, 2021 and the handover and operation under the management of the Company will commenced effective today Wednesday May 5, 2021.

Mr Lenny Chan, Director of the Company will in attendance at the handover and further information will provided .

Skywalker ****

Skywalker will be developed as the high technology division of the Company.  It is proposed to utilize Skywalker to contract the development and manufacture of the self-adjusting loading bucket as part of the joint venture between the Company and Excavator Innovations Pty Ltd from Australia (EIPL).  Skywalker will use Contec to contract build the prototype of the loader bucket and to develop it for the building and construction market in due course.

 Also, Skywalker will design, develop and construct the logistics self-loading and unloading systems for road and railway vehicles. 

In addition, Skywalker will seek to incubate new technologies by networking with the local science and technology innovations, products and businesses both who are clients of Contec and from new business and market developments.

Contec ****

Contec was formed and incorporated on June 1, 2016 and it provides precision machining services to the Scientific, Alternative Power, General Engineering and Automotive Sectors.  The location of the factory is in the Oxfordshire region of UK and it provides close proximity to Oxford University and the science and technology innovation centres of the UK. 

Nearby at Chilton is located the Oxford Harwell Campus Science and Technology Centre including the location of the Synchrotron and close by is the Culham Science Centre (including the Culham Centre for Fusion Energy). The Culham Science Centre is an 800,000 square metre scientific research site that includes two nuclear fusion experiments: JET and MAST. The START Nuclear Fusion Experiment was also conducted on the site until MAST succeeded it in 1999.

The location provides exposure to several existing science and technology Contec clients including the Diamond Light Source (Synchrotron), Optek Group, Proxisense, Oxford Space Systems, Oxford Lasers, Claresys, Formtech Composites and potentially via networking other clients such as the Williams F1 Motorsports Team and McLaren Racing.

We believe the location and business networks will assist Contec, Skywalker and therefore the Company to benefit us to recruit highly qualified, experienced and innovative personnel in several of our own business development and growth areas.

ANALYSIS OF CONTEC ACQUISITION – SUMMARY

Contec has a full 3 years trading history, wherein the prior 2019 year was very successful in its growth and development.  Unfortunately, the Covid pandemic has affected part 2020 performance and also is affecting the current 2021-year operations.   For this reason, it is seen as an opportunity acquisition.  As part of Covid relief for business the UK government is providing assistance to affected businesses in the form of low interest loans with certain other benefits and Contec is currently a beneficiary of one of these and post the acquisition and integration further government assistance will be sought from the UK programmes.  Also, as a company operating with a significant research and development expenditure further monetary assistance is available via R&D tax relief as cash payments.

Further, the EIPL and Skywalker business opportunities will be added to the already existing client base as further sources of income.

Below is a summary of the Contec past years performance on an adjusted basis and a projection based on the 4 months to 2021-year end.  The 2022- and 2023-years additional revenue from increased business development and marketing and from investment in new and additional equipment and capacity to attract new and high value projects and work is also indicated.

The final acquisition was structured in a deal with a purchase price of £150,000, funded by takeover of Contec debt and liabilities and a £65,000.00 Converting Promissory Note, which can convert to Company stock at call.   

The acquisition price is based on:

1. Two (2) times the net unencumbered assets of £75,000 consisting of equipment and leasehold premises.
2. On a 50% enterprise value on projected EBITDA of £82,435 averaged out over 5 years 2019 to 2023.
3. On and Internal Rate of Return of 55.4%; and,
4. On an NPV of £153,000 at a discount rate of 17% per annum over these 5 years.

It is therefore believed that given these parameters the purchase price and business valuation is in line with the commercial market and the acquisition amount represents a fair price.

About UNITED RAIL INC

UNITED RAIL INC, (OTC TICKER: URAL) a company incorporated under the laws of State of Nevada, USA, has formally changed its name to GREEN VITALITY INVESTMENT HOLDINGS INC. The company is currently processing the name change via various appropriate and relevant authorities (FINRA, OTC, DTCC etc) and will advise in due course when the name change becomes effective.  The company is a subsidiary of UK based Zaja Asset Management Services Limited, is an incubator company engaged in promotion of investments in various business sectors. 

For more information about UNITED RAIL INC please visit https://www.otcmarkets.com/stock/URAL/profile

UNITED RAIL INC Forward-Looking Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations regarding UNITED RAIL INC’s ability to enter into the MOU on terms acceptable to UNITED RAIL INC, if at all, potential benefits to UNITED RAIL INC under the MOU.  These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, among other things: our ability to negotiate and enter into the MOU on acceptable terms, if at all; our history of operating losses and uncertainty of future profitability; the final outcome of any pending litigation; our ability to implement our growth strategy; anticipated trends in our business; our limited product line and distribution channels; advances in technologies and development of new competitive products; our ability to comply with the OTC continued listing standards; our ability to maintain effective internal control over financial reporting; the impact of the current coronavirus pandemic; and other risk factors detailed in our most recent Annual Report on Form 10-K and other SEC and OTC filings. You are urged to carefully review and consider the disclosures found in our SEC / OTC filings, which are available at http://www.sec.gov or at https://www.otcmarkets.com/stock/URAL/profile.

Investors are urged to consider statements that include the words “will,” “may,” “could,” “should,” “plan,” “continue,” “designed,” “goal,” “forecast,” “future,” “believe,” “intend,” “expect,” “anticipate,” “estimate,” “project,” and similar expressions, as well as the negatives of those words or other comparable words, to be uncertain forward-looking statements.

You are cautioned not to place undue reliance on any forward-looking statements, any of which could turn out to be incorrect. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this report. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.

References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. UNITED RAIL INC is not responsible for the contents of third-party websites.

UNITED RAIL INC Media Contacts:
Zac Andrejic
Head of Investor Relations
zac@zamsltd.com