China Valves Technology, Inc. Raises Additional $21.7 Million in Registered Direct Offering
December 31 2009 - 8:30AM
PR Newswire (US)
KAIFENG, China, Dec. 31 /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 definitive agreements with certain accredited
investors to sell in a registered direct offering an aggregate of
2,414,113 shares of its common stock at a price of $9.00 per share
for gross proceeds of approximately $21.7 million. In addition, the
Company will issue at closing to the investors warrants to purchase
362,116 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 warrants. Combined with the closing of
the Company's initial registered direct offering on December 28,
2009, the Company will receive aggregate gross proceeds of
approximately $24.7 million, which will be used for working capital
and certain identified acquisitions. "The gross proceeds raised in
this offering will enable us to complete two near-term acquisition
opportunities that we believe will be accretive in 2010 and further
strengthens our confidence that we will meet or exceed our make
good targets for net income and earnings per share for 2010," said
Mr. Siping Fang, chairman and CEO of China Valves. Rodman &
Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw
Capital Group, Inc. (NASDAQ:RODM), acted as the lead placement
agent and Brean Murray, Carret & Co., LLC acted as co-placement
agent in connection with the offering. The shares and warrants 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 the
Company's Form 8-K and related exhibits filed with the Securities
and Exchange Commission on Thursday, December 31, 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 meet make good
targets for net income and earnings per share, 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 Mobile: +86-139-252-79478 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, +86-139-252-79478 (mobile), ;
CCG Investor Relations, Crocker Coulson, President,
+1-646-213-1915, Web site: http://www.cvalve.com/
http://www.ccgirasia.com/
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