LOS ANGELES, Feb. 1, 2007 (PRIME NEWSWIRE) -- Tank Sports (OTCBB:TNSP) announced today that it has completed the acquisition of Redcat Motors. On Tuesday, Jan. 30th, 2007, at the Redcat headquarters in Phoenix, Arizona, the Tank Sports management team led by Chairman Jiangyong Ji and the Redcat management team led by CEO Darin Oreman and COO Lucian Spataro signed the final documents needed to complete the transaction, which included the stock transfer from Redcat Motors to Tank Sports.
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"From this day on we own 100% of Redcat's common stock. Tank's history since 2004 will be rewritten. We believe that Tank's performance will reach new heights in 2007 and beyond. Tank and Redcat's merger report and combined financials will soon be available. The reports will provide more details to the investors for stronger financial data and give them a synergized view of the deal. After the merger, Lucian will be in charge of operation for both d/b/a Tank in El Monte, California and d/b/a/ Redcat in Phoenix, Arizona. Darin will be the lead for the Redcat subsidiary. With the addition of Redcat, we are looking forward for the future development of a stronger Tank Sports," said Tank CEO Jingjing Long.
By acquiring Redcat Motors, Tank also benefits from Redcat's strong management team, which will stay in place and will further enhance Tank's already strong management team. A tier 1 ERP system, 4 warehouse locations strategically located across the United States and over 300 Redcat dealers are a few of the Redcat strengths that are currently being integrated into the combined company.
The company estimates the revenue will reach $39 millions by the year end of 2007.
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles & scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes so-call "China Concept" to participates in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.
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About Redcat Motors
Established in 2001, Redcat Motors is an importer and distributor of off-road power-sports products from China. The company has 5 regional warehouse locations and a dealership network of over 300 dealers. Redcat has a revenue of $70,000 per month for parts, and in 2005 the company had a revenue of $19,000,000. With gross profit of $3.40 million, the company realized a net earning of approximately $643,000 in 2005.
Safe Harbor Statement
The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with a small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.
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