Wednesday, October 28, 2009

China Wind Systems Inc. (CHWY.OB) Announces Closing of $2.4 Million Private Placement

China Wind Systems Inc. is a leading supplier of forged rolled wings to the wind power, industrial equipment, textile and energy industries in China. The company today announced the closing of a recent private placement with a group of investors through Barron Partners LP for 2.4 million shares of its series A preferred stock at $1 per share.

The company recently completed a one-for-three reverse split; as such, each share of series A preferred stock is currently convertible into one-third share of common stock. Through the purchase of 1.5 million China Wind’s shares, Barron Partners entered into a voting agreement with Jianhua Wu, China Wind chairman and CEO.

According to the press release, Wu has the right to vote the stock purchased in the financing and the underlying common stock as to all matters for which stockholder approval is obtained as long as Barron Partners or its affiliates own the stock.

China Wind said the proceeds will be used primarily to fund a new production line for electro-slag re-melted (ESR) products at the company’s forged products facility, which are used to increase the durability and quality of steel material.

“We anticipate that we will begin production of ESR forged products by mid-year 2010,” Wu stated. “We believe that our competitive position would be enhanced by manufacturing ESR products, which are high-end forged components for the wind power industry.”

About QualityStocks:

QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.

Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net

The Quality Stocks Daily Stock Report http://video.qualitystocks.net

The Quality Stocks Daily Blog http://blog.qualitystocks.net

The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net

Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net

No comments: