Tianci International, Inc. (OTC:CIIT) May See a Short Squeeze Soon
A short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock. Short squeezes result when short sellers cover their positions on a stock, resulting in buying volume that drives the stock price up.
Shorts have been making up a large part of the trading in CIIT but the company has very few free trading shares, https://www.otcshortreport.com/company/CIIT
Adding pressure the the market is the fact that some very interesting details about the company have come to light over the last week.
Tianci International, Inc. (OTC:CIIT) Take-Over Target Makes the Cut as Digital Asset Exchange in Malaysia – Live Trading News http://bit.ly/2F9bI6f via @livetradingnews
On October 29, 2018, the Board of Directors of Tianci International, Inc., a Nevada corporation (“we” or “us”), approved the acquisition of all of the issued and outstanding securities of Ezytronic Sdn. Bhd., a corporation organized under the laws of Malaysia (“EZY”) and engaged in the business of reselling computer equipment and accessories, in a share exchange transaction for a consideration to be mutually determined by the parties based upon a good faith valuation of the Company and EZY. The acquisition will be made in accordance with the terms of a nonbinding term sheet (“Term Sheet”).
Seven Hundred Thousand (700,000) ordinary shares of EZY, representing 70% of the issued and outstanding securities of EZY, are held by Mr. Tan Poh Hee, the father-in-law of Ms. Chuah Su Mei, our Chief Executive Officer and Director. Three Hundred Thousand (300,000) ordinary shares of EZY, representing 30% of the issued and outstanding securities of EZY, are held by Mr. Jerry Ooi Jau Long, our independent director.
About EzytronicPress Release | 03/11/2019
DESCRIPTION OF BUSINESS OF EZYTRONIC SDN. BHD.
Ezytronic Sdn. Bhd. (ESB) was incorporated in Malaysia under the Companies Act, 1965 with the name EZYTRONIC SDN. BHD. on 20 November, 2007.
ESB is principally engaged in wholesale of computers, computer related products and provision of related services.
Since inception, ESB has grown to be an award-winning establishment with revenue in excess of RM 20 million.
Over the years, ESB has evolved from a simple trading company to the provision of sophisticated and highly innovative IT and web-based service and solution provider. ESBs core services include, amongst others, cloud-based solution, storage Solution, virtualisation and infrastructure.
ESB is a Platinum Partner of Dell Malaysia and for 2 years running, in 2014 and 2015, ESB was the number 1 ranked Client Solution Partner of Dell in the Small Medium Business segment. In addition to Dell, ESB is also a partner/reseller for Microsoft, Adobe, Bitdefender, vmware, StorageCraft and APC.
Also in 2015, ESBs position in the industry was duly recognised and it was awarded the SME100 Fast Moving Business Award, a prestigious annual recognition program organised by the SME Magazine. For this award, ESB was chosen from among more than 5,000 businesses in each country in the region.
In 2017, one of ESBs most innovative and successful products, SalesMaxx was a winner of the much coveted International Innovative Award. This award was conferred by Enterprise Asia, a non-governmental organisation for entrepreneurship, and selected from among the participating companies throughout the Asian region.
Products and Services
ESB is, first and foremost, a service provider of IT solutions to businesses that comes in the form of web-based and mobile applications. The focus is on clients ease of mind with products and services that are of the highest quality and reliability. As such, ESB forms partnerships with only the best and uses third party products from the likes of DELL, Microsoft, Adobe, vmware, StorageCraft and APC.
As a top-ranked Client and Enterprise Solution Provider, ESB provides Total Solutions to small, medium and large enterprises, with a comprehensive range of modern IT products and services, incorporating the latest technology and knowledge. ESBs core services are Cloud-based solutions, Storage Solutions, Virtualisation and Infrastructure.
The key success factor of ESB, in addition to the provision of total business IT solutions, is its focus on end-to-end maintenance and support, with a team of well-trained software engineers and technicians. The team is trained to be knowledgeable of and understand the clients, and to provide rapid response to such clients. To this end, ESB has developed maintenance service packages tailored to the clients requirements, EzyPRO and EzyAMC. Through EzyPRO and EzyAMC, clients are assured of minimal downtime in the event of system or hardware failure.
ESB also provide in-house extended warranty to clients to assist these clients to defray unforeseen high costs of repairs and replacements.
Mobile and Browser Applications
ESB has an in-house research and development team for mobile and browser applications.
SalesMaxx was designed and developed by ESB with sales directors, managers and salesmen in mind. It is a cloud-based application that can be operated as a mobile or browser application. The application is designed to improve significantly any sales teams efficiency and effectiveness.
Following its success, SalesMaxx was awarded the International Innovative Award in 2017, a highly acclaimed recognition organised by a non-governmental organisation, Enterprise Asia.
Sales and Marketing
Brand Awareness. ESB creates awareness of the company, and products and services directly through several platforms: mobile applications, social media platforms, face to face promotion, events, and cross collaborations with business partners.
- Mobile Applications: Consumers access ESBs products through its collaboration with several platform partners. Merchants advertise their products through the same platform.
- Social Media Platforms: ESB promote its offerings and ecosystem on various social media platforms including Facebook, Instagram, WhatsApp, Telegram and email sharing.
- Face-to-Face: Prospective users are informed through word of mouth.
- Business Partners: ESB continuously seeks businesses for brand partnerships to cross-promote our brand, products and services.
Acquisition of companies with installed-base users are part of its business plan.
Logistic for Products Sales. ESB distributes its products through a hybrid model of Just-in-Time (JIT) inventory warehousing and drop shipping. Customers can choose to collect products over the counter or arrange for direct shipment. Inventory from suppliers are pre-ordered based upon receipt of sales proceeds and arranged for shipping directly to customers or ship to its premises for over the counter collection. Cost of product are borne by ESB upon shipment by suppliers. All customers queries are handled by ESB.
Markets & Region
ESB operates primarily in Malaysia. There are no immediate plans to expand beyond Malaysia.
Strategy for growth
Having achieved recognition as a preferred provider to the small medium enterprises, ESBs immediate plan is to embark on a strategy to be among the main players in the entire industry. This will necessarily involve the following aspects of the business:
ESB intends to further expand its current team and to provide high level training, both in-house and external, and maintain a team of highly competent technical personnel with knowledge and expertise of the latest technology.
Being in the forefront of the IT business solution industry, ESB believes that IT is the backbone of all modern businesses, from a simple email to more advanced networking and sophisticated Enterprise Resource Planning systems, and globalisation via the use of the internet. Therefore, in addition to providing quality and reliable products and services, maintenance and support of such systems and ensuring minimal downtime, will be a very critical aspect of any business. Focus on this aspect has been a successful feature of the companys growth. ESB will continue to make this a priority in its business and branding strategy.
Research and Development
Although solution service providers, like ESB, sources most of their hardware and software from external parties, carefully designing, integrating and implementing an entire system of hardware and software that meets the many different business requirements of clients from many different industries, has always been the greatest challenge, and are what sets the players apart. In this aspect, ESB has been highly successful with its past and present clientele. ESB has been able to consistently provide systems that are efficient, effective and secure with its highly competent technical expertise and its focus on research and development. Research and development continues to be its core strategy to be an industry-wide solution provider.
Having successfully developed and marketed the award winning application, SalesMaxx, ESB has started integrating certain areas of its technical expertise and research and development to develop more applications mainly with its clients in mind. Mobile and browser software and applications are expected to form a significant part of its core businesses in the short to medium term strategy.
ESBs primary operations is in Malaysia. There are no immediate plans to expand beyond Malaysia.
During the twelve months ended December 31, 2017 and 2016, ESBs major vendors that contributed more than 10% to its purchases are as follow:
Innovix Distribution Sdn. Bhd.
M-Link System (M) Sdn. Bhd.
Afiintra Technologies Sdn. Bhd.
Ingram Micro Malaysia Sdn. Bhd.
ECS Astar Sdn. Bhd.
ESB had four major vendors that contributed more than 10% during the twelve months ended December 31, 2017 and one major vendor that contributed more than 10% during the twelve months ended December 31, 2016, to its purchases. Purchases are recorded on accrual basis. ESB maintains minimal stock for product exchange/return while inventory is running on Just-In-Time (JIT) or dropship basis. ESB believes that its exposure to inventory obsolescence, warehousing and logistical cost is minimal.
INTELLECTUAL PROPERTY AND PATENTS
ESB expects to rely on patents, trade secrets, copyrights, know-how, trademarks, license agreements and contractual provisions to establish its intellectual property rights and protect its EZY brand and services. These legal means, however, afford only limited protection and may not adequately protect its rights. Litigation may be necessary in the future to enforce its intellectual property rights, protect its trade secrets or determine the validity and scope of the proprietary rights of others. Litigation could result in substantial costs and diversion of resources and management attention. Any unauthorized disclosure or use of its intellectual property could make it more expensive to do business and harm the operating results.
The laws of Malaysia may not protect ESBs brand and services and intellectual property to the same extent as U.S. laws, if at all. Further, companies in the internet, social media technology and other industries may own large numbers of patents, copyrights and trademarks and may frequently request license agreements, threaten litigation or file suit against ESB based on allegations of infringement or other violations of intellectual property rights.
ESB intends to seek the widest possible protection for significant product and process developments in its market through a combination of trade secrets, trademarks, copyrights and patents, if applicable. It anticipates that the form of protection will vary depending upon the level of protection afforded by the particular jurisdiction. ESB expects that its revenue will be derived principally from its operations in Malaysia where intellectual property protection may be more limited and difficult to enforce. In such instances, ESB may seek protection of its intellectual property through measures taken to increase the confidentiality of its findings.
ESB intends to register trademarks as a means of protecting the brand names of the company and products. ESB will protect its trademarks against infringement and also seek to register design protection where appropriate.
ESB rely on trade secrets and unpatentable know-how that it seeks to protect, in part, by confidentiality agreements. Where applicable, it will require its employees to execute confidentiality agreements upon the commencement of employment. These agreements will provide that all confidential information developed or made known to the individual during the course of the individual’s relationship with the company is to be kept confidential and not disclosed to third parties except in specific limited circumstances. The agreements will also provide that all inventions conceived by the individual while rendering services to the company shall be assigned to the company as the exclusive property of the company. There can be no assurance, however, that all persons will sign such agreements, or if they do, that these agreements will not be breached, that it would have adequate remedies for any breach, or that its trade secrets or unpatentable know-how will not otherwise become known or be independently developed by competitors.