INDIA GLOBALIZATION CAPITAL, INC. (NYSEMKT:IGC) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01. Completion of Acquisition or Disposition of Assets.
As previously reported, in December 2011, India Globalization
Capital, Inc (IGC) acquired a 95% equity interest in Linxi HeFei
Economic and Trade Co., known as Linxi HF Economic and Trade Co.,
a Peoples Republic of China-based company (PRC Ironman), by
acquiring 100% of the equity of HF Ironman Limited, a Hong Kong
company (HK Ironman). The Acquisition was accounted for under the
acquisition method of accounting in accordance with ASC Topic
805, Business Combinations. Further information on this
acquisition and the purchase price allocation was set out in IGCs
Form 10-K for fiscal year ended March 31, 2012 filed with the SEC
on July 16, 2012. In February 2015, IGC filed a lawsuit in the
circuit court of Maryland related to the acquisition seeking to
have the court order rescission of the underlying 2011
Acquisition Agreement and to void any past or future transfer of
IGC shares to the defendants-sellers.
As reported in IGCs Form 10-K for the fiscal year ended March 31,
2016 filed with the SEC on July 14, 2016, PRC Ironman assets
include three beneficiation plants located on 2.2 square
kilometers of hills in southwest Linxi in the autonomous region
of eastern Inner Mongolia, under the administration of Chifeng
City, Inner Mongolia, which is located 250 miles from Beijing,
185 miles from Tianjin Port and 125 miles from Jinzhou Port. At
the time of purchase on December 30, 2011, the beneficiation
plants consisted of buildings with a gross value of approximately
$1 million plant and equipment with gross value of approximately
$5 million and construction in progress with a gross value of
approximately $4 million, along with other assets such as office
equipment, furniture, fixtures, computer equipment and vehicles.
Effective December 30, 2016, IGC gave up control of the PRC
Ironman assets described above, and effectively cancelled
approximately 2.2 million shares of common stock of IGC. The
approximate net impact on the Companys financial statements to be
reflected in IGCs Form 10-Q for the quarter ended December 31,
2016 is a reduction in common stock and a corresponding reduction
in gross assets by approximately $8 million, and a one-time
increase in income of approximately $300,000 depending on the RMB
to USD exchange rate.
Item 9.01. Financial Statements and Exhibits
In accordance with Item 9.01(b), the unaudited proforma condensed
consolidated financial statements showing the effects of the
transaction as required to be filed to Rule 8-05 of Regulation
S-X for smaller reporting companies will be filed by amendment to
this report on Form 8-K within the stipulated period.
(d) Exhibits.
The following Exhibits are attached to this report:
|
Exhibit No. |
Description |
|
99.1 |
Proforma Financial Information. * |
|
99.2 |
Press Release dated January 6, 2017. |
* To filed by amendment to this report on Form 8-K within the
stipulated period.
About INDIA GLOBALIZATION CAPITAL, INC. (NYSEMKT:IGC)
India Globalization Capital, Inc. develops intellectual property for the treatment of life altering or life threatening conditions, through its research on phytocannabinoid-based therapies, in the United States. The Company builds farming facilities for leasing. In India and China, the Company leases equipment, trade commodities and electronic components, and in Malaysia, it focuses to develop, manage and sell residential and commercial real estate. In Hong Kong, through a subsidiary, the Company operates a trading business. The Company is developing a product portfolio of phytocannabinoid-based therapies for the treatment of a range of therapeutic indications, including treatment of neuropathic and cancer pain, epilepsy, end of life supportive care and debilitating pain management, and adjunctive supportive therapies of chronic neurological and oncological diagnoses. The Company is also developing veterinarian therapies, including the treatment of epilepsy in dogs and cats. INDIA GLOBALIZATION CAPITAL, INC. (NYSEMKT:IGC) Recent Trading Information
INDIA GLOBALIZATION CAPITAL, INC. (NYSEMKT:IGC) closed its last trading session up +0.001 at 0.280 with 71,767 shares trading hands.
