S3 Investment Company Announces Redwood Capital Client Agreement
Feb 3, 2011 09:30:43 (ET)
DANVILLE, Calif., Feb 3, 2011 (GlobeNewswire via COMTEX) -- S3Investment Company, Inc. (SIVC, Trade ) today announced that its wholly owned Redwood Capital subsidiary has signed a new client agreement with an established manufacturer of pumps, motors and related products in China. Redwood Capital, which assists private Asian companies through the process of accessing capital markets through Alternative Public Offering (APO) transactions, has been engaged as the Asia merchant banking financial advisor for the client. The new client was established in 1993 and is counted among one of the 500 biggest machine enterprises of China.
Under terms of the agreement, Redwood Capital will work with the client to provide advisory services for an anticipated funding and public listing process. The anticipated services include: business analysis and valuation; pre-audit work; supervision of the audit process; supervision of U.S. and China legal work; preparation and packaging of related documents; investor selection; listing preparation; syndicate presentations through anticipated investor road shows; listing and funding on a targeted international stock exchange; and specified post-offering services.
The targeted amounts of the funding are up to a US$ 60 million initial gross funding requirement and up to $200 million in follow-on offerings. In exchange for its services, Redwood Capital is compensated in cash and stock of the client company once it is listed on a public exchange.
S3 Investment Company Chairman/CEO Jim Bickel, who is currently in China to oversee new Redwood Capital client signings and the review of current and potential clients, commented, "Redwood Capital continues its success in identifying quality potential clients, conducting the necessary pre-contract due diligence, and reaching agreement with companies that meet its deal standards. We look forward to working closely with this new client and ultimately bringing a funding and public listing process to close."
This is the second recent new client signing for Redwood Capital, and the company is currently reviewing additional potential clients.
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