Zoom Technologies Inc. (ZTNO)

[califax]

Zoom Technologies Closes on Private Placement of $7.9M

Date : 11/16/2010 @ 12:56PM
Source : MarketWire
Stock : Zoom Technologies (ZOOM)

http://ih.advfn.com/p.php?pid=nmona&article=45265307

Zoom Technologies, Inc. (NASDAQ: ZOOM) ("Zoom") is pleased to announce the closing of a private placement for gross proceeds of $7,926,240. In the private placement, Zoom sold 2,113,664 units at a price of $3.75 per unit. Each unit is comprised of one share of common stock of Zoom and three-quarters of one common stock purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $4.71 for a period of five years following the closing date.

Global Hunter Securities LLC acted as the lead placement agent in the transaction and Ladenburg Thalmann & Company Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE Amex: LTS), acted as co-placement agent. Ellenoff Grossman & Schole LLP served as legal advisor to Zoom in the transaction. Proceeds from this financing will be used for capacity expansion purposes.

This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities. For additional information, please refer to Zoom's current report on Form 8-K to be filed with the Securities and Exchange Commission in conjunction to this transaction.

About Zoom Technologies, Inc.

Zoom Technologies is a holding company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for the latest generation mobile phones, wireless communication circuitry, and related software products. Zoom Technologies' subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as its own brand under the brand name of Leimone. Zoom's products are both exported and sold domestically. For more information about Zoom Technologies please visit Zoom's corporate website at http://www.zoomleimone.com.

Forward-Looking Statements

This release contains forward-looking information relating to Zoom's plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including the risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

Contacts:

Cynthia Hiponia

The Blueshirt Group

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