Astika Holdings Inc (OTCMKTS:ASKH) Looking to Ink Chinese Merger

Astika Holdings Inc (OTCMKTS:ASKH) is up over 100% over the span of a month and YTD +150%. This forgotten stock is back on our radar because of a potential merger with a Chinese company that could bring a lot of cash under the company’s umbrella.

The expected merger for ASKH is with Jiangsu Ziyang Holiday, so we will provide some information about the share capital structure. ASKH’s authorized shares are equal to 140 million. Additionally, the total amount of shares outstanding is 25,291,838 shares. Jiangsu operates in the home textile sector for silk quilts, silk rugs, air-condition mats, down, feather, and wool products. And last year they reported $20 million in earnings. The two companies would share the revenues if the deal goes through. The deal – which is loaded on their OTC page – could be a gamechanger. President of Astika Mark Richards commented:  “We are thrilled to enter into this letter of intent with the Acquisition.  We consider the Acquisition to furnish the best possible launch pad for our business.  It has been a delight to work together with the founders of the Acquisition to advance the transaction to this stage.  They are top-notch people and business executives.  We are also gratified that the founders have agreed to remain with the company following the completion of the transaction, and share our vision to develop its global sales.” Of course, there are no assurances that the parties will be able to negotiate a mutually acceptable agreement, which makes this is high risk/high reward play.

Astika Holdings Inc (OTCMKTS:ASKH) is refocusing and preparing to relaunch the Company through a range of strategic acquisitions in the textile, service, agricultural and industrial sectors to complement and capture the next wave of growth companies. The Company focuses on expanding outside of the United States regional market. The Company’s initial planned target acquisitions from the Nantong Region in China are private companies, which have been in business with consistent track records of delivering revenue and earnings growth in the textile and service sectors. The Company also has plans for agricultural Green Future initiatives into the Industrial Hemp sector and New Zealand Dairy sector. As of December 31, 2015, the Company had its plant situated at a national development zone, covering an area of 34,000 square meters and a floor area of 23,000 square meters. As of December 31, 2015, the Company had no revenues.

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A quote from the 8-K: With operations in Jiangsu province in China, occupying 34,000 square meters with a manufacturing plant building of 23,000 square meters employing 300, including 20 technicians, 5 special designers, 4 manufacturing engineers, 1 spinning engineer, 3 quality engineers and 45 University educated staff. Jiangsu Ziyang Holiday Bedroom Articles Co. Ltd., holds 1 patent of invention, 12 patents for utility models, 4 design patents, and 40 copyright patents in the textile industry.

The Acquisition is well-regarded for its focus and manufacturing abilities in the home textile sector for silk quilts, silk rugs, air-condition mats, down, feather, wool products and fur articles including the yearly development of new products to meet market demand. Jiangsu Ziyang Holiday Bedroom Articles Co. Ltd., integrates the entire manufacturing value chain for its clients, through a scalable system that assimilates development, procurement, manufacturing and logistic deliveries to its many clients including, RT-Mart where Jiangsu Ziyang’s products are the top-selling home textile items (RT-Mart is the No. 1 chain supermarket with 285 locations in China) The Acquisition is also the sale agents for brands such as Calvin Klein, UGG, Spirit, Wal-Mart, Carrefour, Tesco. The Acquisition intends and has the potential to continue its growth to meet regional needs while looking for new market opportunities in China and global export.

Astika Holdings Inc (OTCMKTS:ASKH) is a high-risk play, but the company has some very interesting drivers ahead if the deal goes through. ASKH would be a much different company with a more diverse revenue stream and deeper pockets. They could also raise more money in the near future with a wider portfolio. We will be writing updates as they arrive. Sign-up for continuing coverage on shares of $ASKH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!