Industrial Tech (ITC) Updates Financials Ahead of $5 Million Offering
Industrial Technical Holdings Corp. (ITC) has picked up efforts to resell 1.1 million of its ordinary shares at the expected price of $5 apiece in New York markets.
The company, based in Qingdao, China, first announced the offering of stock owned by existing investors in September. ITC will not receive the proceeds of the sale, expected to be worth $5.4 million.
ITC operates four subsidiaries in Hong Kong and mainland China involved in the manufacture and sales of cleaner agricultural equipment in China and Germany. In addition, jointly with a German company, ITC operates PlanET LTD Qingdao, which builds green energy biogas plants and has not yet launched sales.
In a filing with the U.S. Securities and Exchange Commission on Thursday, ITC has provided its updated financials. For the six months through June 2019, it reported $2.3 million in revenue, down 17% year-over-year. Net loss was $379,000 compared with $217,000 in the first half of 2018.
For the full year 2018, ITC said its revenue grew 6% to $6.2 million. Net loss was $635,000, according to the filing.
As of June 30, 2019, ITC had $261,300 in cash.
ITC's machinery aims to explore "a potential solution to significantly reduce the burning of straw and begin collecting it by hay pressing (baler machines) and then ferment it in biogas plants to extract green energy," the company wrote in its filings. It plays on Beijing's efforts to reduce pollution at a time when the country is shifting from traditional labor practices to mechanized, high-tech agriculture. Specifically, China plans to achieve agricultural and rural modernization by 2035, ITC wrote in its prospectus.
It said it manufactures components according to German standards as required of it by its partners.
The company said it plans to "use the synergies between its three brands to become a leader in green agriculture, both within China and worldwide, by providing machinery through Fortschritt and CSSC (i) for the mechanization of Chinese agriculture, (ii) for agricultural operations worldwide, and (iii) as part of a green agricultural system whereby organic agricultural waste products are converted into usable energy."
ITC estimated that it needs approximately $10 million for the next 12 months to carry out its plan.