By Jennifer Chiou
New York, May 6 - China Packaging Group Inc. entered into a securities purchase agreement to place about $5 million of its common stock, with settlement previously marked down for April 29, according to an 8-K filing with the Securities and Exchange Commission.
Under the agreement, the company issued 1,456,311 shares at $3.433 per share.
It also opted to allow the lead investor to nominate one member of the company's board as an independent director.
China Packaging will also issue to Hangzhou Xin Shengda Investment Co., Ltd. 3.75 million shares in exchange for the transfer of certain real estate if requested by the lead investor.
Further, if the company fails to complete an underwritten public offering within a year of closing, investors will have the right to notify the company to terminate its chief financial officer.
And, when China Packaging conducts an equity financing above $10 million, investors will have the right to sell half of their shares to finance any transaction.
The company entered into the agreement with investors on April 29.
The designer and manufacturer of paper cartons is based in Hangzhou, Zhejiang Province, China.
| Issuer: | China Packaging Group Inc.
|
| Issue: | Common stock
|
| Amount: | $5 million (approximate)
|
| Shares: | 1,456,311
|
| Price: | $3.433
|
| Warrants: | No
|
| Settlement date: | April 29
|
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