China MediaExpress seeks $30 million; China Information, China Polypeptide settle stock deals

By Stephanie N. Rotondo

Portland, Ore., Jan. 13 - The PIPEs market was dominated by Chinese companies listed on U.S. exchanges Wednesday.

Canadian issuers were also strongly represented.

China MediaExpress Holdings Inc. brought a $30 million deal to market. The company will sell convertible preferred shares in its efforts to raise the funds, which will be purchased by a single investor.

Meanwhile, both China Information Security Technology Inc. and China Polypeptide Group Inc. said they had completed private financings. CIST took in $20 million from a sale of stock, while CPG raised over $3.5 million.

Elsewhere, Petro Vista Energy Corp. wrapped a C$3.3 million private placement of units. And, Vesta Capital Corp. announced it had launched a brokered private placement of stock for proceeds up to C$9 million.

China MediaExpress seeks $30 million

China MediaExpress will take in $30 million from a private placement of series A convertible preferred stock, according to a press release.

Starr International Co. Inc. is the investor.

The company will issue 1 million shares at $30.00 per share. In addition, the investor will receive warrants for approximately 1.54 million common shares, exercisable at $6.47.

The preferreds are convertible into three common shares.

"With this capital infusion from the sale of the series A convertible preferred stock, we have an additional $30 million in cash and potentially $10 million from the warrants, to fund our business expansion plans," remarked Zheng Cheng, founder and chief executive officer, in the release.

"In addition to enlarging our market share and geographic coverage through agreements with additional bus operators, we are now exploring possible M&A opportunities. We are delighted to have Starr International, a respected investment firm with a significant presence in China and the US, as one of our major investors and we are delighted in the firm's confidence in CME, our business plan and growth prospects," Cheng said.

"We are pleased with the valuation that Starr International offered and appreciate the thoroughness of their validation procedures," added Jacky Lam, chief financial officer. "Having worked with them over the past several months on negotiating the terms of the investment, we believe that they have gotten to know CME's business and management and their decision to proceed is a strong vote of confidence in our business model."

China MediaExpress' stock (Amex: CCME) dropped 35 cents, or 3.29%, to $10.29.

China MediaExpress is a Fujian, China-based advertising company.

China Information sells stock

China Information Security Technology, another China-based U.S.-listed company, said it had settled its previously announced $20 million registered direct offering of equity and warrants.

The company sold 3.25 million common shares, including 1.6 million shares held by the company's CEO. Warrants for an additional 813,008 shares were also issued, exercisable at $6.15 for 45 days.

Proceeds will be used for general corporate purposes.

China Information's shares (Nasdaq: CPBY) fell 7 cents, or 1.18%, to $5.88. Market capitalization is $286.93 million.

China Information Security Technology is a Shenzen, China-based provider of digital security, geographic information and hospital information systems in China.

China Polypeptide closes deal

Among other China-based U.S.-listed companies, China Polypeptide Group announced it had raised $3.6 million via a private placement of common shares.

The company sold 666,667 of the shares, as well as warrants for another 333,333 shares. The warrants are exercisable at $6.75 for five years.

China Polypeptide's equity (OTCBB: CHPN) ended steady at $1.10.

China Polypeptide is a Hong Kong-based company focused on the investment, research, manufacture and sale of polypeptide.

Petro wraps unit sale

Petro Vista Energy pocketed C$3.3 million from a private placement of equity units, the company said in a press release.

The Vancouver, B.C.-based company sold 16.65 million of the units at C$0.20 each. The units consisted of one common share and one warrant, which is exercisable at C$0.30 for two years.

Proceeds will be used for working capital, as well as to finish development activities at the company's Taratruga Oil Field.

"I don't want to say that the financing was easy, because it's never really easy," Read B. Taylor, president and CEO, told Prospect News. "But this one was easier than 2009."

Taylor said the deal generated "a lot of interest in the market," particularly among "three or four key players."

"It seemed to move pretty quickly," he said. "I was pretty encouraged by that."

Taylor speculated that the interest in the deal was due to investors "looking for ways to grow in South America," which is where Petro Vista is focused.

"It's good for us because now we got enough financing in place to do our capital programs," he said.

Petro Vista's shares (TSX Venture: PTV) gained 1½ cents, or 7.32%, to C$0.22. Market capitalization is C$9.57 million.

Vesta wants acquisition funds

Vesta Capital is looking to raise up to C$9 million from a private placement of equity.

The Toronto-based capital pool company will sell between 20 million and 45 million common shares, according to the terms of the deal. Each share will be issued at C$0.20.

The financing was announced in conjunction with an acquisition.

Vesta's stock (TSX Venture: VES.P) finished unchanged at C$0.25.

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