Proposed Going Private Transaction

3 Months Ended

Sep. 30, 2011

Proposed Going Private Transaction

Proposed Going Private Transaction

Note 12 - Kent International Holdings Proposed Going Private Transaction

On August 22, 2011, the Company’s majority owned subsidiary, Kent International filed a Schedule 14C Preliminary Information Statement with the United States Securities and Exchange Commission (the “SEC”) in connection with a proposed “going private” transaction.  The proposed transaction involves an amendment to Kent International’s Articles of Incorporation to effect a one-for-950,000 reverse stock split.  If implemented, fractional shares resulting from the reverse split will be redeemed by Kent International for cash consideration of $2.50 per pre-split share.

The proposed transaction, if completed, will result in Kent owning 100% of Kent International.  It is anticipated that Kent International will pay approximately $4,140,000 to redeem the fractional shares owned by the minority shareholders as a result of the reverse split.