Anslow + Jaclin represents lead investors in a $15MM APO to be listed on a Senior Exchange
Lihua Raises $15M in Reverse Merger
Posted November 03, 2008 2:00PM PST
Lihua International, a blank check company, raised $15 million from Vision Capital and other investors after completing a share exchange with a group of companies that control a manufacturer of copper wire in China.
Lihua issued 14 million shares to Magnify Wealth Enterprise Limited in exchange for all of Ally Profit Investments Limited, a British Virgin Island holding company for two Chinese subsidiaries. Danyang Lihua Electron Co. makes wires that are used in the electronics and telecommunication industries. Jiangsu Lihua Copper Industry Co., which will launch by the end of the year, will use recycled wire to make cable and wire for Lihua Electron's customers.
In the private placement, Lihua issued 6.82 million convertible preferred shares and warrants to purchase up to 1.5 million shares. Lihua will use the funds to expand its production lines and launch Lihua Copper.
The placement included a make-good provision linked to net income goals and earnings per share during the next two fiscal years. If Lihua does not achieve $12 million in net income and earnings per share of 50 cents in fiscal 2008 and $18 million in net income and earnings per share of 71 cents in fiscal 2009, the investors in the financing will receive up to 6.82 million shares held in escrow for no additional payment.
Broadband Capital Management acted as the placement agent and Penumbra Worldwide acted as financial advisor to the company. Joseph M. Lucosky, Eric M. Stein, and Joy Z. Hui from the law firm of Anslow & Jaclin, LLP advised Vision Capital and other investors in the financing.
Lihua had $24.8 million in net sales during the first half of the year, and net income of $5.8 million.
The company plans to list its shares on a senior exchange, bypassing the Bulletin Board.
Lihua Press Release