New Corporate Name to More Accurately Reflect Company's New Focus on its China Operating Subsidiaries
DEERFIELD BEACH, Fla., Jan. 14 /PRNewswire-FirstCall/ -- China Direct,
Inc. (Nasdaq: CDS), a U.S. company that manages a portfolio of Chinese
entities, announced today it has received approval from NASDAQ to change its
trading symbol from CDS to CDII effective on Monday, January 26, 2009. In
addition, the Company's board of directors has approved a change of the
Company's name to China Direct Industries, Inc., subject to approval of its
shareholders at the Company's annual shareholder meeting which is expected to
take place in May 2009. The change in the Company's name to China Direct
Industries, Inc. will more accurately reflect its new direction in focusing on
operating its magnesium and basic industry subsidiaries in China.
Starting in the fourth quarter of 2006, the Company began its evolution
from exclusively providing advisory services to small and medium sized
companies in China to acquiring majority control of growing Chinese
businesses, mainly in the areas of magnesium production and distribution and
basic industries. Over the course of 2007 and 2008, the Company has devoted a
substantial majority of its resources in both capital and personnel toward
building these operations. In 2008 the Company derived the vast majority of
its revenues from its China operating subsidiaries and management intends to
continue to focus its efforts in this area. As a result, the board of
directors has approved the change of the Company's corporate name to China
Direct Industries, Inc. and will seek shareholder approval to amend the
Company's articles of incorporation to reflect this change. Management
intends to call for a shareholder vote on the proposed amendment at its next
annual shareholders meeting expected to take place in May, 2009.
Commenting on the Company's new focus, Dr. James Wang Chairman and CEO of
China Direct stated 'It has become apparent to management and the board of
directors that China Direct's future success hinges on our ability to grow our
operating subsidiaries in China as we seek to become the leading producer and
distributor of magnesium in the world and build our presence in other basic
industry groups. It is increasingly important in this challenging world
economy to focus on those areas which we believe provide the best potential
for sustainable long term growth and profitability. We believe that our new
name is more reflective of our current operations and conveys a clear message
to the investment community about our new focus.'
About China Direct, Inc.
