China Valves Technology, Inc. Raises $3.0 Million in Registered Direct Offering
December 28 2009 - 8:00AM
PR Newswire (US)
KAIFENG, China, Dec. 28 /PRNewswire-Asia-FirstCall/ -- China Valves
Technology, Inc. (NASDAQ:CVVT) ("China Valves" or the "Company"), a
leading metal valve manufacturer with operations in the People's
Republic of China (the "PRC"), today announced that the Company has
entered into a definitive agreement with a certain accredited
investor to sell in a registered direct offering an aggregate of
333,334 shares of its common stock at a price of $9.00 per share
for gross proceeds of approximately $3.0 million. The net proceeds
of the financing will be used for the acquisition of an identified
business target and for working capital. In addition, the Company
will issue to the investor a warrant to purchase 50,000 shares of
common stock, in the aggregate, at a price of $9.00 per share,
exercisable for 30 days beginning on the date of the initial
issuance of the warrant. The transaction is expected to close on or
about December 31, 2009, subject to the satisfaction of customary
closing conditions. Rodman & Renshaw, LLC, a wholly owned
subsidiary of Rodman & Renshaw Capital Group, Inc.
(NASDAQ:RODM), acted as the exclusive placement agent in connection
with the offering. The shares in this offering are being issued
under a shelf registration statement declared effective by the
Securities and Exchange Commission on December 14, 2009. A
prospectus supplement related to the public offering will be filed
with the Securities and Exchange Commission. Copies of the final
prospectus supplement and accompanying prospectus relating to the
offering may be obtained from Rodman & Renshaw, LLC, 1251
Avenue of the Americas 20th Floor, New York, NY 10020 or by calling
(212)356-0502. An electronic copy of such prospectus is also
available on the web site of the Securities and Exchange Commission
(the "SEC") at http://www.sec.gov/ . For more detailed information
on this financing, please refer to our Form 8-K and related
exhibits to be filed with the Securities and Exchange Commission on
Tuesday, December 29, 2009. "With the $3 million raised in this
transaction and our current cash balance, we anticipate to further
consolidate the valve industry in China through the acquisition of
an identified target," said Mr. Siping Fang, Chairman and CEO of
China Valves. "The dilution of common shares is minimized, and we
expect to achieve our make good target in net income and earnings
per share for 2009." This press release shall not constitute an
offer to sell or the solicitation of an offer to buy any of the
securities, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. About China
Valves Technology, Inc. China Valves Technology, Inc. through its
subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High
Pressure Valve Co., Ltd., and Tai Zhou Tai De Valve Co., Ltd. is
engaged in development, manufacture and sale of high-quality metal
valves for the electricity, petroleum, chemical, water, gas and
metallurgy industries. The Company has one of the best known brand
names in China's valve industry, and its history can be traced back
to 1959 when it was formed as a state-owned enterprise. The Company
develops valve products by extensive research and development and
owns a number of patents. It enjoys significant domestic market
shares and exports to Asia and Europe. For more information, visit
http://www.cvalve.com/ . Safe Harbor Statements Any statements set
forth above that are not historical facts are forward-looking
statements that involve risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements. Such factors include, but are not
limited to, the Company's ability to develop and market new
products, the ability to access capital for expansion, the ability
to acquire other companies, changes from anticipated levels of
sales, changes in national or regional economic and competitive
conditions, changes in relationships with customers, changes in
principal product profits and other factors detailed from time to
time in the Company's filings with the United States Securities and
Exchange Commission and other regulatory authorities. The Company
undertakes no obligation to update or revise to the public any
forward-looking statements, whether as a result of new information,
future events or otherwise. This press release was developed by
China Valves, and is intended solely for informational purposes and
is not to be construed as an offer or solicitation of an offer to
buy or sell the Company's stock. This press release is based upon
information available to the public, as well as other information
from sources which management believes to be reliable, but it is
not guaranteed by China Valves to be accurate, nor does China
Valves purport it to be complete. Opinions expressed herein are
those of management as of the date of publication and are subject
to change without notice. For more information, please contact:
China Valves Technology, Inc. Ray Chen, VP of Investor Relations
Tel: +1-650-281-8375 +86-139-2527-9478 Email: Web:
http://www.cvalve.com/ CCG Investor Relations Crocker Coulson,
President Tel: +1-646-213-1915 Email: Web:
http://www.ccgirasia.com/ DATASOURCE: China Valves Technology, Inc.
CONTACT: Ray Chen, VP of Investor Relations of China Valves
Technology, Inc., +1-650-281-8375, +86-139-2527-9478, ; or Crocker
Coulson, President of CCG Investor Relations, +1-646-213-1915, Web
site: http://www.cvalve.com/ http://www.ccgirasia.com/
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