SinoHub concludes $7.5 million; Asia Now intends to raise C$4.27 million for properties in China

By Devika Patel

Knoxville, Tenn., Sept. 11 - Companies connected to China dominated PIPE news Thursday as SinoHub, Inc. announced it completed a $7.5 million private placement and Asia Now Resources Corp. announced plans for a C$4.27 million private placement of stock.

SinoHub said its deal will fund its expanding operations.

Canada-based Asia Now Resources is seeking funds to pay for exploration and development on its properties in China.

SinoHub: $7.5 million

SinoHub said it settled a $7.5 million equity sale via agent Global Hunter Securities, LLC.

The deal was conducted with lead investor RENN Capital, and the company said it will use the proceeds to expand its operations.

SinoHub in a press release indicated it was pleased with the results of the deal, especially since current market conditions have been less than ideal for raising capital.

"Especially in view of the current financing environment, the commitment from RENN Capital is a testament to the uniqueness of our SCM platform and to the exciting prospects for our company," SinoHub chief executive officer Harry Cochran said in a press release.

"We are the first company to fully apply the principles of world-class, internet-based solutions to the electronics supply chain management field in Mainland China," Cochran continued. "Our online MIS system, SinoHub SCM, clearly differentiates SinoHub's solution, which makes the supply chain for China's electronics manufacturers transparent to all participants."

The SinoHub SCM platform is an electronic component supply chain management platform that clients use to serve and manage their own customers and suppliers. SinoHub's software engineers developed the platform specifically to target China's electronics market.

"We shipped our first order in February 2001, and that same customer is still with us today. Clearly, our unique business model and the platform we have built around it provide real value to our customers," the company's president, Lei Xia, said in the release. "Because of financial limitations in the past, we have just barely scratched the surface of the $120 billion market in which we operate. The funds from this PIPE round and our new status as a U.S. public company will better enable the company to pursue the vast opportunities that are ahead of us."

SinoHub is based in Los Angeles and is a holding company for its Beijing-based partner, an electronics company. Its shares (OTCBB: SIHI) were unchanged, closing at $2.70 on Thursday.

Asia Now seeks C$4.27 million

Asia Now arranged a C$4.27 million non-brokered private placement of common shares on Thursday with investor China Gold Pte. Ltd.

The company will sell 8,533,681 common shares at C$0.50 apiece to China Gold.

Proceeds will be used for exploration and development of Asia Now's properties in China, in particular, the two key projects at Habo and Beiya in Yunnan Province, as well as for general corporate and working capital purposes.

"We are very pleased that Lippo Group has shown a high-level of confidence in Asia Now's team," Asia Now president and director Kaihui Yang said in a news release. "With Lippo's financial strength and its extensive experience and relationships in China, Asia Now is positioned to consider additional opportunities, including producing assets, to take Asia Now to the next stage of fast growth."

The company also completed another PIPE with China Gold in August. That deal settled for C$5.73 million on Aug. 7.

The Toronto-based company acquires and develops mineral properties in China. Its shares (TSX Venture: NOW) remained unchanged at C$0.28 Thursday.

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