SIHI sells shares @2.30 and trading @2.15.
SinoHub, Inc. Announces $11 Million Registered Direct Offering
Companies:
o Rodman & Renshaw Capital Group,
o SinoHub, Inc
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RODM 1.94 -0.08
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Press Release Source: SinoHub, Inc. On Wednesday March 16, 2011, 8:00 am EDT
SHENZHEN, China, March 16, 2011 /PRNewswire-Asia-FirstCall/ -- SinoHub, Inc. (NYSE Amex: SIHI), a rapidly-growing electronics company in the People's Republic of China, engaged in private label, custom design mobile phone manufacturing and sales (ICM) and electronic component sales and services (ECSS), today announced that it has entered into definitive agreements with a select number of institutional investors to sell 4,791,097 shares of common stock and warrants to purchase up to 1,437,329 shares of common stock in a registered direct offering. The common stock will be sold at a negotiated purchase price of $2.30 per share, and each purchaser will receive a warrant to purchase 0.3 shares of common stock for each share of common stock that it purchases in the offering. The warrants shall be non-exercisable for six months and have a term of exercise of thirty months from the date of issuance and an exercise price of $3.00. The Company expects to receive gross proceeds from the offering of approximately $11 million, before deducting placement agents' fees and estimated offering expenses.
The transaction is expected to close on or about March 21, 2011, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the sale of the shares and warrants pursuant to this offering for general corporate purposes and working capital.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq:RODM - News), served as the exclusive placement agent for the offering. Global Hunter Securities, LLC acted as financial advisor for the offering.
All of the shares of common stock and warrants to purchase shares of common stock are being offered pursuant to a shelf registration statement previously filed with the Securities and Exchange Commission (the "SEC"), which was declared effective by the SEC on January 12, 2011, as supplemented by a prospectus supplement dated March 16, 2011 filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended.
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