CHANGSHU, China, March 5 /PRNewswire-Asia/ -- Sutor Technology Group Limited (the "Company", "Sutor") (Nasdaq: SUTR), a leading China-based manufacturer and distributor of high-end fine finished steel products and welded steel pipes used by a variety of down-stream applications, today announced that it has entered into agreements with several institutional investors for a direct placement of up to 2,740,000 shares of common stock at a price of $2.70 per share. The gross proceeds to the Company from this offering will be approximately $7.4 million. In addition to the issuance of the common shares, the Company will issue warrants to the investors to purchase up to approximately 685,000 common shares. The warrants will have an exercise price of $3.76 per share, a term of five years and a call price at $5.40 after the one-year anniversary of issuance.
Sutor intends to use the net proceeds from this offering for general corporate purposes, including expanding its R&D facilities and capacity at its existing facilities, investing in new businesses, products and technologies, both through acquisitions and capital programs, funding ongoing operating, repayment of indebtedness and working capital requirements. At the present time, Sutor has not entered into any agreements in principle relating to any material acquisition.
The shares and warrants were sold by Sutor pursuant to a shelf registration statement previously declared effective by the Securities and Exchange Commission on December 14, 2009. This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Roth Capital Partners, LLC acted as the exclusive placement agent for the transaction. An electronic copy of such prospectus is also available on the web site of the SEC at http://www.sec.gov .
About Sutor Technology Group Limited
Sutor (Nasdaq: SUTR) is one of the leading China-based manufacturers and distributors of high end fine finished steel products and welded steel pipes used by a variety of down stream applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com .
Forward-Looking Statements
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov . The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
