By Devika Patel
Knoxville, Tenn., April 22 - Yongye Biotechnology International, Inc. released further details on a $10 million private placement of stock in an 8-K filed Tuesday with the Securities and Exchange Commission.
On April 18, the company said in a news release it had completed a private placement of stock. The company also said it has completed a reverse merger and share exchange with the public company formerly known as Golden Tan, Inc.
In Tuesday's filing, the company said it sold 6,495,619 common shares at $1.54 apiece on April 17. Investors also received warrants for 1,623,905 common shares, which are exercisable at $1.848 for five years with a cashless exercise feature.
ROTH Capital Partners, LLC was the agent and was paid a 7% cash fee and warrants for 649,562 shares, with the same terms as the warrants issued in the placement.
The merger was completed by the exchange of newly issued Yongye shares for shares held by the shareholders of the holding company controlling the company's operations in China. Yongye remained the surviving corporation and, as a result of the share exchange, the holding company became a wholly owned operating subsidiary. In connection with the reverse merger, Golden Tan's corporate name was changed to Yongye Biotechnology International, Inc.
With headquarters in Beijing and manufacturing plant in Hohhot, Inner Mongolia, Yongye is engaged in the research, development, production and sales of fulvic acid based liquid and powder nutrient compounds used in the agriculture industry.
| Issuer: | Yongye Biotechnology International, Inc.
|
| Issue: | Common stock
|
| Amount: | $10,000,655
|
| Shares: | 6,495,619
|
| Price: | $1.54
|
| Warrants: | For 1,623,905 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.848
|
| Agent: | ROTH Capital Partners, LLC
|
| Fees: | 7% cash fee, warrants for 649,562 shares
|
| Pricing date: | April 17
|
| Stock symbol: | OTCBB: GDTN
|
| Stock price: | $2.40 at close April 22
|
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