Attached files
| file | filename |
|---|---|
| 8-K - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_8k.htm |
| EX-10.7 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-7.htm |
| EX-10.2 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-2.htm |
| EX-10.5 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-5.htm |
| EX-10.8 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-8.htm |
| EX-10.3 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-3.htm |
| EX-10.1 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-1.htm |
| EX-10.4 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-4.htm |
| EX-10.6 - CHINA INFRASTRUCTURE CONSTRUCTION Corp | v163267_ex10-6.htm |
CHINA
INFRASTRUCTURE CONSTRUCTION
COMPLETES
USD$10 MILLION FINANCING
EQUITY
OFFERING FOR BEIJING’S MAJOR U.S.-LISTED READY-MIX CONCRETE PRODUCER TWICE AS
LARGE AS ORIGINALLY PLANNED
Beijing, China—October 20, 2009—PR
Newswire—China Infrastructure Construction Corporation (OTC BB: CHNC),
one of the major U.S.-listed providers of ready-mix concrete in Beijing,
completed a USD$10 million equity offering on October 16, 2009. “This
financing was twice as large as originally planned, and will allow us to build
on our strength as one of Beijing’s major ready-mix concrete suppliers,” said
CHNC Chairman and Founder Yang Rong. “We are pleased to complete our
first-ever external fundraising in the U.S. capital markets, and will continue
our expansion in North East China,” Chairman Yang added.
Led by
institutional investors in Asia and North America, the CHNC private placement
offering was increased to USD$10 million from an originally planned USD$5
million. The Company sold a total of approximately 2,564,103 shares of its
common stock, no par value, at $3.90 per share in the
offering. Immediately after the private placement there were
approximately 11,118,397 shares of CHNC common stock
outstanding. California-based Hunter Wise Securities, LLC served as
the exclusive placement agent to CHNC.
CHNC
through its PRC subsidiaries operates its ready-mix concrete facilities in
China’s capital under the brand of Chengzhi Qianmao Concrete Co, Ltd. (“Beijing
Concrete”). In its most recent fiscal year ended May 31, 2009 CHNC
achieved after-tax net income of USD$10.5 million. As a condition of
the financing, CHNC agreed to net income targets of USD$14 million and USD$18
million, subject to certain adjustments, for each of the fiscal years ending May
31, 2010 and 2011 respectively. “Over the past six years, Beijing Concrete has
enjoyed an average growth rate of over 30% annually,” said Chairman
Yang.
“CHNC has
successfully expanded its operations from a single production facility in
Beijing to additional production in the nearby city of Tangshan,” continued
Chairman Yang. Currently, the Company has two prime production
facilities with one located in Beijing’s Nanhaizi area, on the west side of the
Yizhuang Economic Development Zone south of Beijing, and the other is located in
the Tangshan Development Zone, about two hundred kilometers east of
Beijing. CHNC has a combined annual operating capacity from these two
locations of 3.0 million cubic meters.
In
addition to its production and profit prowess, Beijing Concrete is a leader in
China’s “Green Concrete” movement referring to increased use of the
environmentally-friendly content in ready-mix concrete, by reducing the energy
and raw material consumption in its production, and by mixing and recycling
various industrial wastes to create a more sustainable
product.
All of
CHNC’s products have passed the ISO9001-2005 Certification Quality System and
Integrated Certification System including Quality Management System
Certification, Environmental Management System Certification and Occupational
Health and Safety Management System Certification issued by Beijing Zhong Jian
Xie Certification Centre.
About
China Infrastructure Construction Corporation and Ready-Mix Concrete in
China
CHNC has
been based in Beijing, China since its founding in 2002 and owns and operates
three production lines of ready-mix concrete. The Company’s
subsidiary Beijing Concrete ranks among the top four producers in China’s
capital.
China’s
importance as a producer and user of concrete and concrete products has been
swiftly growing since the 1990s as its economy has opened and become more
developed and vibrant. China is the world’s largest producer of cement and
the output of cement reached up to 1.38 billion tons in 2008. Its
production has grown about 10 percent per year over the past two decades and is
now growing even faster to keep up with massive urbanization. Today China
produces roughly half of the total global output of cement and ready-mix
concrete, more than the next three largest producers, India, Japan, and the
United States combined.
Concrete
product producers are the largest market for cement in China, projected to
account for approximately 40% of all cement consumption in 2010. The PRC
government’s continued efforts to modernize the country’s infrastructure are
exemplified by such massive projects as the USD$586 billion economic stimulus
package of 2008, with two-thirds of the expenditure targeting
construction.
China
generates half of all new building activity in the world and rapid expansion is
expected to continue to 2030 as up to 400 million citizens are projected to move
into urban areas.
About
Hunter Wise
Headquartered
in Irvine, California, Hunter Wise Securities, LLC is a FINRA-registered
Broker/Dealer and SIPC Member Firm. Hunter Wise Securities is wholly
owned by Hunter Wise Financial Group, LLC (www.hunterwise.com),
which provides mid-market investment banking services from 12 offices in the
U.S., as well as locations in Canada, China and the United
Kingdom.
Cautionary
Statement Regarding Forward Looking Information
This
press release may contain forward-looking information about the Company, China
Infrastructure Construction Corp., Chengzhi Qianmao Concrete Co, Ltd., and its
subsidiaries. Forward-looking statements are statements that are not historical
facts. These statements can be identified by the use of forward-looking
terminology such as "believe," "expect," "may," "will," "should," "project,"
"plan," "seek," "intend," or "anticipate" or the negative thereof or comparable
terminology, and statements which may include discussions of strategy, and
statements about industry trends future performance, operations and products of
each of the entities referred to above. Actual performance results may vary
significantly from expectations and projections as a result of various factors,
including without limitation and the risks set forth "Risk Factors" contained in
the Company's Current Report on Form 10-K filed on September 15,
2009. The shares of common stock issued in connection with the
transaction has not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration
under the Securities Act and applicable state securities laws or an applicable
exemption from those registration requirements. The Company has agreed to file a
registration statement covering the resale of the shares of common stock issued
in the private placement and certain other shares, upon request by the
investors.
This
press release does not constitute an offer to sell or the solicitation of an
offer to buy any security and shall not constitute an offer, solicitation or
sale of any securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction.
Contacts:
China
Infrastructure Construction Corporation
John
Bai
+86 139
1070 8829
johnwhit2008@gmail.com
Hunter
Wise Financial Group, LLC
Dan
McClory, Managing Director
+1 949
732 4102
dmcclory@hunterwise.com