China Shoe Announces Completion of Private Equity Financing Totaling US$550,000
February 04 2008 - 9:30AM
PR Newswire (US)
Completion of Financing Allows Company to Accelerate Execution of
its Retail Strategy SHANGHAI, China, Feb. 4 /PRNewswire-FirstCall/
-- China Shoe Holdings Inc. (OTC:CHSH) (BULLETIN BOARD: CHSH) ,
announced today that it has completed a US $550K private placement
of its restricted common stock. On January 30 2008, the Company
completed its first round of private equity financing since going
public (commonly referred to as a "PIPE" transaction), and obtained
investment funds from YU Guorui in the aggregate sum of US $550,000
for the purchase of 4,230,769 shares of the Company's restricted
common stock. This represents a purchase price of $0.13 per share.
China Shoe management is pleased to point out that the PIPE
financing terms negotiated are fairly priced, and are a simple
stock purchase agreement with no convertible features, warrants,
stock options or any type of preferred securitization. All common
stock sold in this financing will bear a restrictive legend
reflecting the need for a Securities Act registration or an
exemption such as Rule 144, for resale. Because there is no
convertible security being issued, the Company will not be subject
to any "death spiral" or other dilutive terms in this
straight-forward restricted stock purchase agreement The completion
of financing will accelerate the execution of China Shoe's retail
strategy and the Company now targets to have, in full operation, up
to twenty self-owned stores and numerous licensed stores promoting
China Shoe's own brand of Kangies footwear by July 2008. "This PIPE
financing allows the company to invest additional capital to fuel
the growth of our retail strategy while maintaining the strong
growth on the manufacturing side", said Gu XianZhong, Chairman and
CEO of China Shoe Holdings. "Additionally, we are very pleased to
have YU Guorui as our investor as she has had extensive experience
in the retail business as well as established business networks in
the region, which are definitely tremendous strategic assets for
the company." About China Shoe Holdings, Inc. Based in Shanghai,
China, China Shoe manufactures, designs and sells private label and
its own branded footwear throughout China and in overseas markets,
principally Japan. China Shoe has its own manufacturing facilities
located in China. China Shoe has built a diversified customer base
throughout China and overseas. Safe Harbor Statement This release
may contain forward-looking statements. These forward- looking
statements are neither promises nor guarantees, but involve risks
and uncertainties that may cause actual results to differ
materially from those in the forward-looking statements. Readers
should not place undue reliance on any such forward-looking
statements that are based solely on information known as of the
date of this release. China Shoe Holdings, Inc. disclaims any
obligation to update or revise any such statements to reflect any
change in expectations or in events, conditions or circumstances on
which any such statements may be based or that may affect the
likelihood that actual results will differ from those contained in
the forward-looking statement. DATASOURCE: China Shoe Holdings,
Inc. CONTACT: Samuel Lo of China Shoe Holdings, Inc., Fax,
+86-21-51686308, ; or Investors, Donald P. Visco of D. Visco, Inc.
for China Shoe Holdings, Inc., +1-561-213-4469,
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