By Laura Lutz
Des Moines, Nov. 1 - China Precision Steel, Inc. arranged a direct placement of stock and warrants for $47.93 million, according to an 8-K filing with the Securities and Exchange Commission.
Institutional investors agreed to buy 7.1 million common shares at $6.75 each.
The investors will also receive 1.42 million warrants, each exercisable at $8.45 for five years beginning on May 6, 2008.
Settlement is expected on Tuesday.
Roth Capital Partners, LLC is the placement agent.
Of the proceeds, about $18 million will be used to buy a new hydrogen annealing furnace and a new 1,700 mm cold roll mill, about $22 million will be used to repay existing bank debt and the rest will be used for general corporate purposes.
China Precision is a steel processing company based in Shanghai.
| Issuer: | China Precision Steel, Inc.
|
| Issue: | Stock
|
| Amount: | $47,925,000
|
| Shares: | 7.1 million
|
| Price: | $6.75
|
| Warrants: | For 1.42 million shares
|
| Warrant expiration: | Five years, beginning on May 6, 2008
|
| Warrant strike price: | $8.45
|
| Agent: | Roth Capital Partners, LLC
|
| Pricing date: | Nov. 1
|
| Settlement date: | Nov. 6
|
| Stock symbol: | Nasdaq: CPSL
|
| Stock price: | $8.45 at close Oct. 31
|
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