Proceeds to be used for general working capital purposes, company says
By Devika Patel
Knoxville, Tenn., Dec. 31 - China Direct Industries, Inc. said it arranged a registered direct offering of stock. The deal will raise $4 million.
The company will sell 2,222,223 common shares at $1.80 per share. The price per share is a 3.23% discount to the Dec. 30 closing share price of $1.86.
The investors also will receive warrants for 777,778 shares. The warrants are exercisable at $2.00 for five years. The strike price is a 7.53% premium to the Dec. 30 closing share price.
Rodman & Renshaw, LLC is the agent.
Management intends to use the proceeds from this offering for general working capital purposes to forward its magnesium distribution businesses in China as well as its metal ore trading projects in Mexico and South America.
Based in Deerfield Beach, Fla., the company produces pure magnesium and distributes basic materials in China.
| Issuer: | China Direct Industries, Inc.
|
| Issue: | Common shares
|
| Amount: | $4 million
|
| Shares: | 2,222,223
|
| Price: | $1.80
|
| Warrants: | For 777,778 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | Dec. 31
|
| Stock symbol: | Nasdaq: CDII
|
| Stock price: | $1.86 at close Dec. 30
|
| Market capitalization: | $48.64 million
|
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