Deep Field Technologies announced that it has entered into a definitive securities exchange agreement with Beijing Sino-US Jinche Yingang Auto Technological Services Ltd. ("AutoMart").
AutoMart is a China-based joint venture recently formed between Beijing Silver Harbor Car Service Center and Mayflower Auto Group, LLC. The closing is subject to the approval by shareholders of Deep Field Technologies, financing in the form of a convertible debenture for not less than $4 million, and the requisite approvals by the People’s Republic of China.
It is anticipated that this transaction will close in the first quarter 2006. The Company will continue to trade on the OTC Bulletin Board.
AutoMart was established in August 2005 and invested by Chinese Party and American Party. AutoMart is the first auto service joint venture created since China entered the World Trade Organization. AutoMart focuses on automobile after-sales services, including maintenance and repairs, insurance, parts sales, interior furnishings, care products, tires, and windshields.
Based on statistics issued by the municipal government of Beijing, there are currently about 2.3 million vehicles in the city of Beijing. The anticipated rapid increase of privately-owned vehicles, coupled with Beijing’s preparation for the 2008 Olympics, has dramatically increased the demand for quality automobile maintenance services.
Pang Guisan, Chairman and President of Automart, stated, "We currently have 30 auto centers in Beijing, six of which are large centers. We expect to have 60 in Beijing by the first quarter of 2006. We are planning to set up more than 3,000 chain and franchise stores in major cities throughout China over the next five years. We anticipate that AutoMart will have sales in excess of $1.2 billion by 2011."