Initial Koncepts, Inc. entered into a letter of intent to acquire CleanTech Innovations, Inc. (OTCPK:CTEK) in a reverse merger transaction on April 16, 2014. Initial Koncepts, Inc. entered into an agreement and plan of share exchange to acquire CleanTech Innovations, Inc. (OTCPK:CTEK) in a reverse merger transaction on June 13, 2014. Pursuant to the terms of the merger agreement, CleanTech Innovations will acquire all of the shares of Initial Koncepts in exchange for 266.8 million newly issued shares of CleanTech Innovations's common stock. Upon completion of the merger and the issuance of the exchange shares, the current stockholders of Initial Koncepts will own approximately 50% of the then outstanding shares of CleanTech Innovations's common stock and the then-current holders of the outstanding common stock of CleanTech Innovations will own the balance. Post transaction, Initial Koncepts will become a wholly-owned subsidiary of CleanTech Innovations.

Prior to the closing, CleanTech Innovations will obtain shareholder approval to amend its Articles of Incorporation to change the name to “6D Global Technologies, Inc. Prior to the closing, Initial Koncepts intends to complete a private placement equity offering to raise between $3 million and $5.1 million at $0.3 per share. The Board of Directors is expected to consist of Tejune Kang, Adam Hartung, Terry McEwen and Anubhav Saxena. Tejune Kang will also be the Chairman and Chief Executive Officer. The completion of the merger is subject to conditions including the raising and placement into escrow of the proceeds from the financing, Spin-Off, NYGG (Asia) Ltd's consent to convert all of its notes, interests, debts, advances and liabilities into common shares. the approval by CleanTech Innovations's shareholders and Board of Directors of the merger agreement and other transactions contemplated in connection with the merger, the approval by Initial Koncepts's Board of Directors and the Initial Koncepts shareholder of the merger agreement and other transactions contemplated in connection with the merger, the provision by CleanTech Innovations to Initial Koncepts of certain financial statements of CleanTech Innovations, the provision by Initial Koncepts to CleanTech Innovations of certain financial statements of Initial Koncepts and due diligence. The transaction is approved by the Board of both CleanTech Innovations and Initial Koncepts on June 12, 2014.

The transaction is also subject to complete and satisfactory due diligence review of Initial Koncepts, Inc. by CleanTech Innovations and of CleanTech Innovations by Initial Koncepts. CleanTech Innovations shall have obtained the consent of a majority of its shareholders prior to the transaction for the amendment in its Articles of Incorporation, for an authorization to convert CleanTech Innovations into a corporation organized under the laws of the State of Delaware and shall have obtained the resignation of all of the CleanTech Innovations's China-based officers and directors and the appointment of the proposed U.S.-based directors. The transaction requires completion of the spin-off of all of the CleanTech Innovations's China-based operations and assets to its former management team led by Bei Lu and requires obtaining NYGG (Asia) Ltd's consent to convert all of its notes, interests, debts, advances and liabilities made to, in, by or on behalf of CleanTech Innovations, into 242.5 million shares.

Either party may terminate the merger agreement if the merger is not consummated by December 31, 2014. CleanTech Innovations has applied for a new NASDAQ stock trading symbol “SIXD”. The transaction is expected to close on or about September 29, 2014. Steve LaTourette of McDonald Hopkins Government Strategies LLC acted as strategic advisor, and William W. Uchimoto of Stevens & Lee P.C., Neal Beaton of Holland & Knight LLP and K&L Gates LLP acted as legal advisor to CleanTech Innovations. Kane Kessler, P.C. acted as legal advisor to Initial Koncepts.