Sunsi Energies (PINK:SSIE)

On November 30, 2010 the Company entered into definitive agreements to purchase a 60% interest in Wendeng He Xie Silicon Co. Ltd., a company with a trichlorisilane manufacturing factory located in Wendeng, China from Liu Dongqiang, a Chinese individual, and to have Wendeng re-formed as a joint venture under Chinese law. Wendeng produces annually 20,000 metric tons of Trichlorosilane. The Company expects to close the Wendeng acquisition in the first quarter of 2011.

On August 3rd 2010, SunSi HK signed a letter of intent with Wendeng He Xie Silicon Co. Ltd. (“Wendeng”) for the acquisition of 60% of its existing 20,000 MT TCS facility, plus an increase of Wendeng’s capacity by an additional 40,000 MT. The Company estimates that it will have to raise $6.5 million to consummate the acquisition, and an additional $8.8 million to increase the capacity.

Some Additional History:

Recently, we determined that despite our best efforts over the past year, we could not acquire as planned the Zibo Commerce and Trade Co (“ZBC”)TCS production factory on terms that would be beneficial to SunSi’s shareholders; therefore we changed directions, ended our efforts to acquire ZBC and instead obtained distribution rights to all of ZBC’s TCS production in the following manner:

On December 12, 2009, SunSi Hong Kong(“SunSi HK”) secured the exclusive distribution rights for ZBC’s TCS production for the international market. We believe exportation of TCS out of China is minimal, as most of the Chinese production is used to supply the country’s demand. The lower cost of production in China is advantageous when competing over the globe; one that SunSi intends to capitalize on.

On April 29th 2010, SunSi HK signed a definitive agreement to acquire 90% of Zibo Baokai Commerce and Trade Co. (“Zibo Baokai”), a company with the right to distribute ZBC’s TCS production in the China market. At the date of this report, we are waiting for the issuance of a business license in order to consummate this acquisition.  All other terms necessary to complete the acquisition were completed on July 31, 2010, when the Articles of Association and Joint Venture Agreement were signed. When completed this acquisition will enable SunSi to generate revenue and to create a presence within the Chinese and other international TCS markets.

GeoTeam® Note: The company has yet to record any revenues.

Update:

On March 9, 2011 we completed the previously announced purchase of a 60% interest in Wendeng He Xie Silicon Co. Ltd., a company with a trichlorosilane manufacturing factory located in Wendeng, China from Liu Dongqiang, a Chinese individual.  As part of the closing, Wendeng was re-formed as a joint venture business under Chinese law and issued a new business license.

The Acquisition was effected pursuant to an equity transfer agreement dated November 22, 2010, as amended on December 15, 2010 by a letter agreement.

Pursuant to the terms of the Acquisition, the Company shall:

(i) pay Mr. Liu USD $445,075 within three months of the issuance of the business license;

(ii) issue 1,349,628 shares of or common stock to Mr. Liu or his assigns, such shares carry a right of redemption by Mr. Liu whereby the Company (or an affiliate of the Company) shall buy such shares back from Mr. Liu within six months at a price of USD equivalent to RMB 18,000,000 on the transfer date (currently equal to approximately USD $2,700,000); and

(iii) cause an affiliate of the Company to transfer 1,574,566 shares of its Company common stock to Mr. Liu, or his assigns, such shares shall be restricted from resale for 2.5 years.

Wendeng currently produces annually 22,000 metric tons of Trichlorosilane. As a result of closing the Acquisition, SunSi will begin to immediately consolidate all of Wendeng’s revenues, and 60% of its profits.