SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
--------------------------
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of Earliest Event Reported): June 16, 2004
NOVA NATURAL RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 0-15078 84-1227328
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
2951 Simms St., Hollywood, Florida 33020
(Address of principal executive offices) (Zip Code)
(954)849-9507
(Registrant's telephone number, including area code)
ITEM 5. Other Events
Nova Completes Agreement to Purchase the Assets of Two Gas Stations
Located in China for Implementation of Its LPG Conversion Technology
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--June 17, 2004--Nova
Natural Resources Corporation (Pink Sheets:NVNJ) announced today that
the Corporation signed an agreement to purchase the assets of two Gas
Stations located in Anyang City, Henan Province, China.
Nova has acquired from Great Frame International Enterprise
Limited, a Hong Kong Company, the operating assets of two gas stations
with LPG refilling equipment. The stations along with the recently
acquired LPG conversion technology will allow Nova to continue the
conversion of additional vehicles in these markets and expand into
other markets within the region. The stations have the capacity to
generate in excess of two million dollars in combined fuel
alternatives, but the primary focus will be to convert and service LPG
vehicles due to higher gross margins and the positive environmental
impact. Nova will issue 600,000 shares of common stock at an agreed
price of $2.00 per share, for a total purchase price of $1,200,000.
The majority owner and President/Director of Great Frame International
Enterprise Limited is Wang Li; she is also a director of Nova. Wang Li
will become the largest shareholder of NOVA with approximately 45% of
the issued and outstanding as of this date.
This acquisition is designed to prove the LPG conversion
technology is a benefit for both Nova and the Chinese market. The
average cost to convert a taxi from gas to LPG is around $420 and the
conversion cost for a bus is approximately 25% higher. It is estimated
that the average taxi will drive 450KM per day with a monthly fuel
saving of $73.00, creating a pay back for the driver in six months.
The pay back for a bus is approximately one and a half years, but
combined with the positive environmental results the local governments
are eager to convert. In the market in which the acquired stations are
located there are approximately 830 converted taxis and 300 converted
busses under the conversion technology. Management expects to convert
at least another 40% of the current number and then move into markets
much larger and where few if any vehicles have the conversion
technology installed.
The company expects the primary growth revenue generator will be
the refilling of the LPG vehicles; the current gross margin is
significantly higher than that of the non converted Petrol vehicles.
Nova plans to seek funding and issue additional equity to expand
the LPG Conversion Technology. This expansion will be accomplished by
acquiring and retro fitting existing stations and building LPG
stations within the Anyang City, Henna Province. The company will then
expand into markets where Nova has already secured local governmental
approval.
Mr. Chris Tse, President and CEO stated, "This acquisition in only
the beginning, it is difficult to project the overall potential at
this point, but this initial start is designed to promote and prove
the conversion technology. The significant savings for end users and
the preservation of the air quality will grow to be a benefit for
China. Additionally, the audit for 2002 and 2003 is in draft form and
are currently being reviewed. We expect to submit all outstanding
financials within the next 30 days."
This press release contains forward-looking statements identified
by words such as "believe," "expect," "anticipates" and similar
expressions. Actual results might differ materially from those
projected in, expressed in or implied by the forward-looking
statements. Nova cautions investors not to place undue reliance on
forward-looking statements, which speak only as to management's
expectations on this date.
Some paragraphs of this press release, particularly those
describing Nova's strategies, operating expenses reductions and
business plans, contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1993, as amended and
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. While Nova is working to achieve
those goals, actual results could differ materially from those
projected in the forward-looking statements as a result of a number of
factors, including difficulties in marketing its products and
services, need for capital, competition from other companies and other
actions, any of which could have an adverse effect on the business
plans of Nova, its reputation in the industry or its expected
financial return from operations. Factors such as these could have an
adverse effect on Nova's results of operations. In light of
significant uncertainties not included in the forward-looking
statements herein, the inclusion of such information should not be
regarded as a representation by Nova that it will be achieved.
CONTACT: Nova Natural Resources Corporation, Fort Lauderdale
Wayne Doss, 954/849-9507, Fax 954/349-2899
wayne@compusource.net
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned duly authorized.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, The
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NOVA NATURAL RESOURCES CORPORATION
By: /s/ Chris Tse
------------------------------------
Chris Tse, President
Date: June 16, 2004