World Trade Systems PLC MOU and Update on IBD (1673O)

TIDMWTS

RNS Number : 1673O

World Trade Systems PLC

15 May 2018

World Trade Systems PLC

15 May 2018

WORLD TRADE SYSTEMS PLC ("WTS plc")

MOU and International Business Development

The Board of WTS plc has decided that the Group must increase its business and diversify its income to include additional revenue from outside of China which contributes to sustained cash flow in the UK. Therefore, further to the previous announcement dated 17 January 2018, the Board has continued to analyse and consider various opportunities to expand Group operations internationally. This includes pursuing the Taiwan health and fitness business, for which WTS plc is incorporating a new Taiwanese wholly owned subsidiary, "WTS Taiwan".

In order to continue developing and implementing this Taiwan business, WTS has signed a Memorandum of Understanding (MOU) and investment agreement with Kun Xin International Co., Limited ("Kun Xin"). This MOU states that Kun Xin will provide a loan facility up to GBP3,000,000 to WTS for the purpose of developing an integrated health and fitness business platform, beginning initially with the Taiwan market. Primarily, Kun Xin will advance the sum of GDP100,000 to WTS plc in order to cover the initial costs of establishing this wholly owned subsidiary. The detailed terms of this loan facility will later be negotiated and signed in a formal investment agreement between the two parties. The WTS Board is in discussion with professionals on approvals required from shareholders and other regulatory compliance necessary to permit the conversion of debt to shares in consideration of lower than market interest rates.

The Board of WTS plc is pleased to state that, in addition to the establishment of the Taiwan business, the Company is looking at a number of opportunities in the UK and Europe that will contribute to the financials and reduce future dependency on China income making it more eligible to listing authorities. We intend to make further related announcements in due course.

For more information please contact Mr. AKM Ismail, Executive Director: [e-mail]

Information on WTS plc

WTS plc is a global health company headquartered in the UK. Currently WTS plc's main business operations are the development, and distribution of health food products targeting mid/high end consumers. Having previously had no business activities for a number of years, the Company began its current business activities in July of 2016 when WTS China was established and began operations.

This information is provided by RNS

The company news service from the London Stock Exchange

END

STRAAMJTMBABBMP

(END) Dow Jones Newswires

May 15, 2018 09:51 ET (13:51 GMT)