By Sheri Kasprzak
Atlanta, Nov. 22 - China World Trade Corp. received $30 million in a standby equity distribution agreement, the company said Monday.
On Nov. 15, Cornell Capital Partners LP provided the equity line, which may be drawn upon over two years.
The maximum advance China World Trade can draw is $1.5 million, except the first advance, which will be for $3 million.
The company will issue shares to Cornell at a price equal to 99% of the lowest closing bid price of the company's common stock for five consecutive trading days after the notice date.
Cornell, according to a statement, intends to sell any shares bought in the equity agreement at the prevailing market price. Cornell will retain 4% of each advance and will receive a one-time fee in the form of 225,000 shares.
Duncan Capital LLC was placement agent in the offering.
Based in Guangzhou, China, China World Trade operates business clubs in China. It must use the proceeds from the equity agreement for general working capital.
| Issuer: | China World Trade Corp.
|
| Issue: | Standby equity distribution agreement
|
| Amount: | $30 million
|
| Tenor: | Two years
|
| Price: | 99% of the lowest closing bid price for five trading days
|
| Warrants: | No
|
| Placement agent: | Duncan Capital LLC
|
| Investor: | Cornell Capital Partners LP
|
| Announcement date: | Nov. 22
|
| Pricing date: | Nov. 15
|
| Stock price: | $2.30 at close Nov. 15
|
| Stock price: | $2.58 at close Nov. 22
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
