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[2morrowsGains]

HRBN just announced a Private Placement. IF, (and that's a big if), they use the PP $ to acquire a company that develops motors and electrical products for vehicles, like they talked about in a recent PR, I think the stock might pop, especially at a time with oil & gas at an all time high...."Now that we have passed the TS16949: 2002 authentication, we will immediately enter the automobile motor and electric markets according to our company's growth strategy to implement the company's initiatives on acquisitions and development of various motors and electric products for vehicles. This will further expand our company's markets and bring even more value to our shareholders," commented Yang Tianfu, Chairman and CEO of Harbin Electric."
http://biz.yahoo.com/prnews/050802/cntu009.html?.v=7

Here's the PP news...

On August 31, 2005, Harbin Electric, Inc. (the "Company") entered into Securities Purchase Agreements (collectively, the "Purchase Agreements") with institutional investors and other accredited investors (the "Investors") to sell an aggregate of 1,600,000 shares (the "Shares") of the Company's common stock, par value $0.00001 at a price of $3.00 per share together with warrants (the "Warrants") to purchase an aggregate of 480,000 shares (the "Warrant Shares") of common stock at $3.50 per share (the "Private Placement"). The Private Placement is being entered into pursuant to Regulation D of the Securities Act of 1933, as amended (the "Securities Act").

Pursuant to the terms of the Private Placement, the Company entered into a registration rights agreement with the Investors and agreed to file a registration statement with the Securities and Exchange Commission (the "Commission") for the resale of the Shares and the exercise of the Warrants within ninety (90) days of the closing of the Private Placement. Pursuant to the terms of the registration rights agreement, the Company is required prepare and file with the Commission a Registration Statement on Form SB-2 or other applicable form covering the resale of the Shares and Warrant Shares within ninety (90) days from the date of the closing.

Item 3.02 Unregistered Sales of Equity Securities
See Item 1.01 above.

The parties intend that the Shares and Warrants offered and sold pursuant to the Private Placement to be exempt from registration and the prospectus delivery requirements under the Securities Act of 1933, as amended (the "Act"), provided by Section 4(2) of the Act and Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Investors have represented that they are accredited investors and that the Investors' intention is to acquire the securities for investment only and not with a view to distribution. An appropriate legend will be placed on the Shares and on any common stock certificates issued upon the exercise of the Warrants.