DALIAN, China, Aug. 27 /PRNewswire-Asia-FirstCall/ -- China Sun
Group High-Tech Co., Ltd. (OTC Bulletin Board: CSGH) ("China Sun
Group" or the "Company"), a vertically integrated supplier of raw
materials for rechargeable Lithium-ion (Li-ion) batteries in China,
today announced that it has entered into a definitive binding
agreement with an institutional investor to provide the Company
with up to $15,000,000 in equity
financing, via periodic sales of common stock over a 12 month
term.
Under this agreement, the Company will have the right, but not
the obligation, to obtain the financing through the issuance of its
common stock to the investor in a series of periodic draw downs.
The shares may be sold to the investor during this 12 month period
at times and in drawdown amounts, subject to the amount of shares
requested for drawdown being (A) at least equal to the value of
100% of the average daily volume (U.S. market only) of the
Company's common stock for the Ten (10) Trading Days prior to the
applicable date of the drawdown request; provided, however, that
the amount requested for drawdown shall not be less than
$200,000, or (B) up to $2,000,000. The Company shall not be entitled to
submit a drawdown request sooner than ten Trading Days from the end
of previous funding of a drawdown request. The right to drawdown
under the facility is subject to various additional conditions.
The Purchase Price for the Company's common stock identified
when calculating the number of shares issued to the investor in
return for funding a drawdown request shall be equal to 85% of the
lowest closing Best Bid price of the Company's common stock during
a five trading day period following a drawdown request. If the
stock price for the shares to be issued on any drawdown does not
equal or exceed $0.80, as calculated,
then funding under the drawdown request will not occur.
The sale of shares is subject to certain other conditions,
including the effectiveness of a registration statement for resale
of any shares purchased by the investor under this equity line.
The Company will use the funds received from drawdowns under
this facility for expanding their Lithium Iron Phosphate production
lines and advancing research and development of a Power Li-ion
battery production business.
"This facility provides us with sufficient additional funding to
increase production capacity for our existing products and to start
research and development work for our potential entry into the
Power Li-ion battery business," said Mr. Bin Wang, Chairman and CEO
of China Sun Group. "Going forward, China
Sun's strong internal cash flow, existing cash reserves and
this facility provide the resources for the next phase of the
Company's growth. Furthermore, we believe that our new equity line
providers are highly experienced in the new clean energy sector and
will give us additional insight as we increase the scale of our
business."
The shares referred to in this press release may not be sold nor
may offers to buy be accepted prior to the time a registration
statement relating to the resale of the shares has been filed and
becomes effective. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
About China Sun Group High-Tech Co., Ltd.
China Sun Group High-Tech Co. ("China Sun Group") produces anode
materials used in lithium ion batteries. Through its wholly-owned
operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd
("DLX"), the Company primarily produces cobaltosic oxide and
lithium cobalt oxide. According to the China Battery Industry
Association, DLX has the second largest cobalt series production
capacity in the People's Republic of
China. Through its research and development division, DLX
owns a proprietary series of nanometer technologies that supply
state-of-the-art components for advanced lithium ion batteries.
Leveraging its state-of-the-art technology, high-quality product
line and scalable production capacity, the Company has now
diversified into the manufacture of LIP and plans to forward
integrate into the manufacture of power Li-ion batteries. For more
information, visit http://www.china-sun.cn .
Safe Harbor Statement
The statements contained herein that are not historical facts
are considered "forward-looking statements." Such forward-looking
statements may be identified by, among other things, the use of
forward-looking terminology such as "believes," "expects," "may,"
"will," "should," or "anticipates" or the negative thereof or other
variations thereon or comparable terminology, or by discussions of
strategy that involve risks and uncertainties. In particular,
statements regarding the Company's ability to become a leading
anode material supplier for Li-ion batteries used in the new energy
automobile industry are examples of such forward-looking
statements. The forward-looking statements include risks and
uncertainties, including, but not limited to, the effect of
political, economic, and market conditions and geopolitical events;
legislative and regulatory changes that affect our business; the
availability of funds and working capital; the actions and
initiatives of current and potential competitors; investor
sentiment; and our reputation. We do not undertake any
responsibility to publicly release any revisions to these
forward-looking statements to take into account events or
circumstances that occur after the date of this report.
Additionally, we do not undertake any responsibility to update you
on the occurrence of any unanticipated events, which may cause
actual results to differ from those expressed or implied by any
forward-looking statements. The factors discussed herein are
expressed from time to time in our filings with the Securities and
Exchange Commission available at http://www.sec.gov.
For more information, please contact:
Company Contact:
Mr. Guosheng Fu, Vice President
China Sun Group High-Tech Co., Ltd
Tel: +86-411-8288-9800/8289-2736 (China)
Email: ir@china-sun.cn
Web: http://www.china-sun.cn
Investor Relations Contact:
Mr. Mark Collinson, Partner
Email: mark.collinson@ccgir.com
Tel: +1-310-954-1343
CCG Investor Relations
Web: http://www.ccgirasia.com
SOURCE China Sun Group High-Tech Co., Ltd.
Copyright . 27 PR Newswire