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China Precision Steel Closes $47.9 Million Financing

11/07/2007 - China Precision Steel completes sale of an aggregate of 7,100,000 shares of its common stock and an aggregate of 1,420,000 warrants to purchase its common stock, for gross proceeds of $47,925,000.

China Precision Steel announced that it has successfully completed the sale an aggregate of 7,100,000 shares of its common stock at a purchase price of $6.75 per share and an aggregate of 1,420,000 warrants to purchase its common stock, for gross proceeds of $47,925,000.
 
Roth Capital Partners, LLC acted as the placement agent for this registered direct transaction.
 
“The market opportunity for high value ultra-thin precision steel remains strong,” commented Dr. Wo Hing Li. “With this additional capital, we plan to expand our production capacity of high carbon and specialty precision steel as we build our dominant position in China and expand into international markets.”
 
The company noted that this announcement does not constitute an offer to sell or the solicitation of an offer to buy any security. Any offering of the company's common stock and warrants in the United States is being made only by means of a written prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
 
China Precision Steel is a niche precision steel processing company principally engaged in the production and sale of high-precision cold-rolled steel products. The company also provides value-added services such as heat treatment, and cutting medium and high carbon hot-rolled steel strips. China Precision Steel produces high precision ultra-thin and high-strength (0.03 to 7.5 mm) cold- rolled steel products primarily for automotive components, food packaging materials, saw blades and textile needle manufacturing companies in the People's Republic of China. The company's operations are primarily located in China, with sales to Southeast Asia and
Africa.