SinoHub, Inc. reported the successful completion of a recent capital market transaction involving an equity offering of common stock. The company received approximately $11 million in gross proceeds in the offering.
SinoHub conducted a direct offering of approximately 4.79 million shares of common stock at a price of $2.30 per share. The company negotiated the price directly with a group of institutional investors that indicated an interest in owning part of the company.
The institutional investors involved in the offering also received a warrant that entitles the holder to purchase the common stock of SinoHub at a later date. Each common share in the offering contained one warrant to purchase 0.3 shares of common stock at a price of $3.00 per share.
SinoHub, Inc. reported working capital of $57.5 million as of 12/31/2010, and will use the proceeds to supplement that working capital, and for other corporate purposes. The deal was placed with the institutional investment community by Rodman & Renshaw LLC.
For more information on the company, go to www.sinohub.com