BVI Company News

Investment and fund management company iGlobe Treasury Management, backed by the New Zealand Government’s Venture Investment Fund (NZVIF), has spent 1 million USD on a major stake in Wise Giant, the production company established by NZ animation start up. The same as with all the other approved privately managed venture capital funds,  NZVIF puts its 3rd stake in all the iGlobe investments in start-up companies.

Incorporated in the BVI, Wise Giant is the 1st media company that received funds from NZVIF, which usually resources technology or bio-technology start-ups. iGlobe’s general partner Philip Lum says iGlobe is going to invest in other media start-ups. In her turn, NZVIF chief executive Franceska Banga says there are no restrictions over the industries in which fund management companies can choose to invest, if they only encourage emerging of NZ companies. Also, there are no strict rules regarding investment structuring.

Wise Giant’s first project will be animated movie for children and adults. It is expected to be ready for release in the USA in the beginning of the next year. After that, Wise Giant is planning to produce 3D animations for other films, mobile phones and games.

Although Wise Giant is registered in the British Virgin Islands - an offshore jurisdiction – the movie will be made only in New Zealand, accordingly, some tax will be paid to local authorities. As IGlobe general partner Mr. Lum explained, the company was registered in a tax haven because media companies prefer a “neutral country” for signing contracts.

China’s advertising company FOCUS Media Holdings Ltd. has entered an agreement with Appreciate Capital Limited (ACL), a company registered in the British Virgin Islands, which specializes in leasing screen time from movie theaters in Chinese cities. By this deal, Focus Media Holdings receives 70% of shares of the ACL.

Focus Media, the largest overseas-listed advertising company in China, has informed on its plans in its second-quarter report, having noted that the initial deposit to ACL shareholders made US$2.8 million. Further details of expected transaction, such as ACL’s business locations and network size, were not disclosed. The procedure of the acquisition will be finished next month.

Through purchasing major stock of the BVI company, Focus Media plans to enter the movie theater advertising market and develop its business – the company’s main specialization is placing flat-panel TVs displaying ads in office buildings and other locations.

The company’s chief financial officer Daniel Wu said that “extending the business into movie theater is another way to capture and attract the eyeballs of urban consumers”.

It is worth noting that revenues of Focus Media grew 247% in a year, and in the 2nd quarter of the year they reached 50.6 million USD.

As to advertising revenue from company’s “commercial location network”, it increased 122.2% over the same period last year and 44.7% quarter-on-quarter to 31.1 million USD.

Revenue of Focus Media in the 3rd quarter is predicted to range from 58 million USD to 60 million USD.

In the post BrazMin reporting results for the 2nd quarter of the year and making new appointment we gave the shortcut to the press release of the company engaged mainly in the acquisition and development of gold exploration fields. Rcently another gold and platinum drilling company incorporated in the BVI has announced its technical results on the new project. The company AfriOre Limited, which has extensive experience in platinum exploration and acquisition in South Africa, currently is developing its 74%-owned Akanani Platinum Project on the Northern Limb of South Africa’s Bushveld Complex.

The results for the P2 Unit for the two drill holes, reported by the BVI company, are supporting platinum, gold, nickel and copper. The company gives technical summary and analysis of the results from the P2 Unit in the drill holes, highlighting the most important figures for the P2 Unit as well-developed and persistent mineralized zone. A revised independent mineral resource estimate for the Akanani Platinum Project is expected to be completed in September, 2006.

Exploration of Akanani is being conducted under the supervision of Company’s Qualified Person for Akanani, Mr. Henri Lombard, who is registered Professional Natural Scientist with the South African Council for Natural Scientific Professions.

It should be noted that the company AfriOre Limited has a successful history of increasing shareholder value through the exploration and development of its projects. The capital of the BVI company is approximately C$ 22.8M, it has 51,066,380 shares outstanding and 57,098,402 shares fully diluted.

The Russian Aluminium companies SUAL and Rusal are said to have an intent of merging. They are expected to make official statement about this deal in the middle of October. Currently the procedures of consolidations are still being worked out, and the two main options are the merger on Rusal basis and creating a new venture. In any case, the brands of SUAL and Rusal will remain on the market.

SUAL ranks among the top ten aluminium producers in the world. The group’s assets are owned by SUAL International, a company incorporated in the British Virgin Islands. The majority stake of the BVI company belongs to SUAL co-owners Viktor Vekselberg and Leonard Blavatnik. The minority stockholders are General Director of Komi Aluminum Vladimir Kremer and 1st Vice President of SUAL Holding Yevgeny Olkhovik. In 2005 SUAL produced 5.4 million tons of bauxite, 2.3 million tons of alumina and 1.05 million tons of aluminium; company sales totalled at $2.7 billion.

Rusal is controlled by Jersey company Rusal Ltd. , whose owner is Oleg Deripaska. In 2005, Rusal produced 5.7 million tons of bauxite, 3.9 million tons of alumina and 2.7 million tons of aluminium; the sales were $6.6 billion.

Although both SUAL and Rusal are declining to comment on the supposed deal, it is already known that in the result of the merger Deripaska will get 75% of the united company, and the remaining 25% will go to the co-owner of SUAL Vekselberg. For the major stockholder of the BVI company SUAL International, it will be good possibility to release funds for new chemistry, energy and utility projects. It is supposed that the consolidated venture will cost $22 billion, and Vekselberg’s stake is estimated at minimum $5.5 billion. This is the price of the 1st rank in the global aluminium market, as the expected deal will by no means create the world biggest aluminium maker.

Yesterday the international designer, developer and licensor of software for the gambling industry, Playtech, announced Interim Results for 6 months (till June 30, 2006).

The company reported the following bright financial results:

• revenues up by 139% to USD 46.2 million;
• casino revenues up by 129% to USD 40.4 million;
• poker revenues up by 851% to USD 4.8 million.

In these 6 months, Playtech has made a remarkable progress in its main areas of performance as well as added seven new licensees to the portfolio. Playtech’s clients operate 137 gaming sites, which makes the company one of the world’s leading software providers to the gaming industry.

Board also announced the first dividends for Playtech as a listed company - an interim payment of 8.7 cents per share to be paid on 6 October 2006. It is worth mentioning that Playtech was listed on London Stock Exchange just recently – in March 2006.

Along with outstanding results, it is worth indicating that recent legal issues in the US have caused concern amongst investors in the online gaming sector. Despite the fact that Playtech has a much stronger position than operators, the company is committed to diversifying its business portfolio, regarding both geography and product. The percentage of total revenues derived from the US have decreased, while the contribution from Europe and the exciting Asian markets have increased:

• the percentage of income from US players was now 48%, compared with 58% a year ago and 49% in the 1st quarter;
• 3 new licenses were added this year through migration of active game sites with the majority accommodating Asian and European players;
• the company has initiated new Asian focused games and product development, including Mahjong.

As to product diversification, Playtech launched 2 new products last month:

• access to Playtech’s popular Casino platform through mobile phones offered to players;
• the Videobet product providing access to the land based gaming terminal market - a new market segment for Playtech.

Playtech Limited is a company incorporated in the British Virgin Islands as an offshore company with limited liability in 2002. Playtech (Cyprus) Limited wholly owned by Playtech Limited was incorporated as an International Business Company with limited liability in 2001.

Playtech Cyprus actively acquires companies incorporated in Israel, Estonia, and BVI.
In 2003, Playtech Cyprus acquired the share capital of 2 offshore companies - Networkland Limited and Playtech Bingames Limited - both are companies incorporated in the British Virgin Islands.

Lakota Research International Inc, registered in Road Town, Tortola, British Virgin Islands, has acquired the ownership of 5,000,000 common shares in the capital stock of biotechnological company IRI Separation Technologies Inc. As a result of this arrangement, BVI company Lakota Research International owns and controls the amount of shares which represent 26.5 percent of the issued and outstanding share capital of the IRI Separation Technologies Inc.

The BVI company does not own or control any other securities of IRI Separation Technologies. The shares were acquired in a private transaction at a price of $0.40 per share. Lakota may acquire other shares of the Company for investment purposes.

IRI Separation Technologies is a company that specializes in the extraction, development and marketing of monoclonal and polyclonal immunoglobulin antibodies for virus and bacteria related health issues. The immunoglobulin antibodies are intended for both the general and specific antibody market and are used as a nutraceutical for human consumption. Recently the Company has arranged for a private placement of up to 1,500,000 units at a price of $0.60 per unit.

British Virgin Islands company BrazMin Corp., engaged mainly in the acquisition and development of gold exploration fields, reported the losses for the three month period ended June 30,2006. The announced amount of losses makes C$858,970 or C$0.03 per share. The capitalized exploration for the six month period was C$985,638, total amount being C$5,697,141.

These amounts are the result of BVI company’s current exploration program on the São Jorge Project in Para State, Brazil, and are very much connected with land acquisition costs. Probably, the investments in this currently major project of BrazMin Corp. already prove to bring results: the company has just reported the achievements of Phase II Exploration Program.

Tony Ransom, President and CEO of BrazMin, stated “We are very encouraged by these new results from the current drill program at São Jorge, in particular with a second hole from the Kite Zone intercepting multiple zones of gold mineralization”.

On June 30, 2006 the assets of BrazMin totalled at approximately C$14.5 Million.

Another important event for this BVI cmpany is the appointment of the new Director of the Corporation. Francis Crothers assumed an office on June 15, 2006.

The company was incorporated on July 8, 2004 under the provisions of the BVI International Business Companies Act, with the name Resource Holdings and Investments Inc. On April 5, 2005 it changed its name into BrazMin Corp.

On August 14, 2006 the company China Pharma Holdings, Inc. has announced its financial and operating results for the second quarter of the fiscal year.

The financial results for the three- and six-month periods ended June 30 2005 include the financials of Onny Investment Limited, - China Pharma’s predecessor company, which was incorporated in the British Virgin Islands on January 12, 2005. On June 16, 2005 Onny acquired Hainan Helpson Medical & Biotechnology Co., Ltd. - the main operating unit if China Pharma. On October 19, 2005 reorganization was started by making Onny a wholly-owned subsidiary of China Pharma, and accomplished through the exchange of shares between Onny and China Pharma. Because of these changes, the full results for 2006 cannot be directly comparable with results for the same period of 2005, and were provided in press-release for informational purposes only.

Total revenues for the second quarter of 2006 increased up to $4.0 million, from $0.5 million in the second quarter of 2005, but there is a decline compared to $4.7 million reported in the first quarter of 2006. Operating income for the second quarter was  1.4 million versus $0.1 million for the same period of 2005. Net income was up to $1.8 million from $1.6 million in the first quarter. Second quarter 2006 net income benefited from a bad debt recovery of $0.6 million.

Gross profit for the quarter was $1.9 million, compared to $2.2 million last quarter and $0.2 million in the same period in 2005. Gross margin for the second quarter was 47%, up from 34% in the second quarter in 2005.

Selling expenses, as well as general and administrative expenses  increased, mainly due to costs associated with being a public company, and investments made in approximately 50 new hires in the second quarter.

Earnings per share in fiscal 2006 reflect an increase in China Pharma’s average weighted shares outstanding from 85,112 shares in the second quarter of 2005 to 34.7 million shares in the second quarter of 2006.

Total revenues for the six month period were $8.7 million, up from $0.5 million for the same period last year. Net income increased 94% from pro forma net income of $1.8 million for the first half of 2005 to $3.4 million for the first half of 2006. Gross profit and gross margin increased 47% to $4.1 million. Operating income was $3.2 million, compared to $0.1 million last year. Earnings per share were $0.10, versus $1.23 for the first six months in 2005.

Recently the company entered into a new  $2 million dollar credit facility which will provide the flexibility to finance its growth.

For fiscal year 2006, China Pharma expects that revenues will be approximately $20 million and net income will be approximately $8 million.

China Pharma Holdings, Inc. is a company manufacturing, developing and marketing generic and brand bio-pharmaceutical products in China that treat a wide range of conditions, including infections, hepatitis, vascular, CNS and other prevailing diseases. A specialty company Helpson Bio-pharmaceutical Co., Ltd is a wholly owned subsidiary of China Pharma Holdings.

TNK BP Group, one of the largest companies involved in global oil and gas industry and initially registered on the British Virgin Islands, has just signed an agreement of co-operation for further development of oil-and-gas production, refining and petrochemical enterprises with Russian federal agency. Information about it can be found in the article TNK-BP Signed an Agreement of Cooperation with Rostekhnadzor.

These new development incentives were anticipated by several stages of company restructuring, which took place during the last year and finished by forming a TNK-BP Holding and liquidation of minor holdings Tyumen Oil Co., SIDANKO and ONAKO. As a result, the capitalization of TNK-BP Holding made $41.5 billion. By some estimations of analysts, the company’s liquidity is comparable to that of LUKOIL.

TNK-BP Ltd. was incorporated in the BVI tax haven in 2003, as a result of a merger of  Access/Renova consortium and Alfa Group with the British BP. The British Petroleum (BP) is one of the four largest energy companies in the world, vertically integrated in the industry of oil, natural gas and gasoline.

Before final restructuring, TNK-BP held the control stock of the minor holdings, through several companies registered in the BVI and Cyprus offshore jurisdictions. In December 2005 all the assets of the company were consolidated in TNK-BP Holding.

Our last discussion was about the lawsuit which took place in the High Court of the British Virgin Islands and became widely known in the business and offshore community due to the loud names of the claimant and sued persons and due to the large sum of money claimed.

It could be interesting to see the development of the whole lawsuit story.

Mark Burby, a British businessman, which had an investment agreement with the Brunei’s family members, alleged that Pengiran Ayub and his wife Damit repeatedly reneged on their promises to pass the money.

First, he tried to sue them personally in Singapore – the place where most negotiations took place. However, the decision of the court was in favour of the Pengirans, based on the fact that the agreement was the matter between companies and not between individuals.

After that, the proceedings were launched by CBTL Holdings against Smart Plus Investment Holdings, the BVI offshore company belonging to the Pengirans. Final decision was made by the BVI High Court and it was in favor of the British businessman. The story has not finished yet and continues with company liquidation procedure.

This court dispute is the latest legal case which involves the members of the family of Brunei’s Sultan, - one of the world’s richest personalities, whose fortune is estimated at £12.4 billion. The Sultan is planning to visit Britain next month, and he has been already asked to intervene in the case with coffee chain launch where his family members are in the role of respondents.

It should be noted that Brunei itself is also an offshore jurisdiction, although not as popular as BVI. However, offshore IBC’s can be registered there, based on International Business Company Order, 2000 (IBC O).