JERSEY CITY, N.J., Sept. 6 /PRNewswire-Asia/ -- Hudson Securities, Inc. today announced the completion of a $30 million private placement transaction for Jinhao Motor Company (OTCQB: GIMC), a Nevada-headquartered company that manufactures motorcycles and small engines for overseas and domestic markets at its subsidiary in the People's Republic of China. The private investment in a public equity (PIPE) financing was part of a reverse merger with U.S.-listed Georgia International Mining Corp. Hudson Securities acted as the sole placement agent of the convertible preferred stock and warrants on behalf of Jinhao, and was an advisor in the reverse merger.
According to PlacementTracker, which is a service of Sagient Research Systems, this is the second largest PIPE transaction completed concurrently with a reverse merger since January 2008.
"The transaction underscores the strength of our cross-border investment banking group's origination, execution and syndication capabilities to address the capital-raising needs of Chinese and other non-U.S. companies," stated Anthony M. Sanfilippo, Chief Executive Officer of Hudson Securities. "With continued market uncertainty, we're committed to providing an array of financing solutions to serve the needs of micro-, small- and mid-cap companies as well as their investors."
Frank J. Drazka, Head of Investment Banking at Hudson Securities, added: "We would like to thank Jinhao, Chairman Tsoi and Worldwide Capital, Jinhao's financial advisor, for selecting Hudson to be a trusted partner and participating in the success of this transaction."
As part of the reverse take-over, Jinhao's major shareholder, Mr. Chak Shing Tsoi, exchanged his stock in Jinhao with Phoenix-based Georgia International Mining Corp. for a 95 percent stake. The PIPE investors are based in Asia, and a portion of the financing was structured to be compliant with Sharia Law.
Hudson Securities offers a range of investment banking and corporate services to non-U.S. companies including public and private placements of debt and equity, exchange listings, non-deal roadshows, M&A advisory and restructuring. The firm also recently completed transactions for Chinese and Australian clients in industries including industrial technology and consumer products.
About Jinhao Motor Company
Jinhao is primarily engaged in the production and distribution of motorcycles and small engines for overseas and the domestic markets. In 2006, the Company began a research and development program for electric cars and in 2009 established an electric vehicle manufacturing plant. Jinhao has developed and manufactured prototypes of several models of electric vehicles, including utility vehicles, and a compact two-door and a mid-size four-door car, both of which are used in city and highway environments. Since October 2009, the Company has delivered over 1,500 electric vehicles to customers both domestically and internationally. Jinhao has invested over $45 million in R&D for electric vehicles. The Company has signed sales agency agreements for electric vehicles with six distributors across China and overseas, and has signed sales contracts for electric vehicles with distributors from Spain, Finland, Italy, Chile and Thailand. Jinhao is also focused on developing distribution channels for electric vehicles into the EU and the United States. The Company's electric vehicles are expected to be priced much lower than similar models produced by other car manufacturers in the international market. Jinhao's primary strength lies in its existing strong global sales distribution network from the motorcycle business. For additional information please visit http://www.jin-hao.com .
About Hudson Securities
Hudson Securities, Inc., a subsidiary of Hudson Holding Corporation (OTC Bulletin Board: HDHL), provides a full range of corporate finance, advisory, and capital markets services and institutional equity research focused on the micro-, small- and mid-cap marketplace. Hudson Securities is dedicated to meeting the liquidity needs of its clients by providing execution solutions and making markets in over 15,000 U.S. and foreign securities. As a registered broker-dealer under the Securities Exchange Act of 1934, Hudson Securities is a member of the Financial Industry Regulatory Authority ("FINRA").
For more information, please contact:
Aimee Baxter
CJP Communications
Tel: +1-212-279-3115 x225
Email: abaxter@cjpcom.com
