Form 8-K for TEDA TRAVEL GROUP INC
Termination of a Material Definitive Agreement, Financial Statements and Ex
Item 1.02 Termination of a Material Definitive Agreement
The Registrant had reported in its Current Report on Form 8-K dated January 14, 2005 that it had caused Teda Hotel Management Company Limited, a wholly owned subsidiary of the Registrant, to sign a definitive agreement to purchase 55% of the outstanding registered capital of Shanghai Bowking Hotel Management Co. Ltd. (“Bowking”), a domestic company registered in the People’s Republic of China. The purchase price was approximately US$242,200, of which US$121,100 payable in cash and the remaining US$121,100 payable in the restricted common stock of the Registrant.
This transaction has been rescinded on May 30, 2006 as Bowking’s hotel management contract failed to materialize as scheduled. Hence, this acquisition has not passed the Registrant’s due diligence clearance.
Only 19,370 shares were issued as consideration but no cash has ever been paid. The share certificate has now been sent to Registrant’s transfer agent for cancellation. There were no termination penalties for either party.
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements
2.1 Definitive Sale & Purchase Agreement between Teda Hotel Management
Company Limited and Shanghai Bowking Hotel Management Co. Ltd. is incorporated by reference from Registrant’s Form 8-K filed with the Security and Exchange Commission dated January 14, 2005.